CONSOLIDATED ANNUAL ACCOUNTS 2015 - Indra · Indra Consolidated Annual Accounts and Management Report 4 2 Consolidated Annual Accounts Consolidated Income Statements for the years

02CONSOLIDATED

ANNUAL ACCOUNTS2015

1. Statements Financial Position

2. Income Statements

3. Statements Changes in Equity

4. Statements of Cash Flows

5. Consolidated Report

6. Appendix

Indra Consolidated Annual Accounts and Management Report 3

Consolidated Annual Accounts

1

The accompanying notes form an integral part of the consolidated annual accounts.

Consolidated Statements of Financial Position at 31 December 2015 and 2014(Expressed in thousands of Euros)

Equity and Liabilities Note 2015 2014

Subscribed capital 18 32.826 32.826

Share premium 18 375.955 375.955

Reserves 18 (1.464) 1.949

Other own equity instruments 18 17.259 17.046

Cash fl ow hedges 18 (30.409) (19.866)

Own shares 18 (3.081) (1.642)

Translation differences 18 (42.224) (48.263)

Prior years' profi t and loss 18 (54.823) 582.894

Equity attributable to owners of the Parent 294.039 940.899

Non-controlling interests 18 13.607 12.675

Total equity 307.646 953.574

Financial liabilities from issuing bonds and other marketable securities 20 237.543 229.686

Loans and borrowings 20 724.372 596.044

Other non-current fi nancial liabilities 21 32.383 30.984

Government grants 22 5.994 12.958

Provisions for liabilities and charges 23 103.371 40.394

Deferred tax liabilities 36 3.330 1.821

Total non-current liabilities 1.106.993 911.887

Liabilities held for sale 10 y 17 1.302

Financial liabilities from issuing bonds and other marketable securities 24 729 38.891

Current loans and borrowings 24 78.648 91.971

Trade and other payables 25 1.173.181 1.175.343

Current tax liabilities 36 11.678 17.340

Other liabilities 26 353.186 273.770

Derivatives 26 30.936 18.493

Total current liabilities 1.649.660 1.615.808

Total equity and liabilities 3.064.299 3.481.269

Assets Note 2015 2014

Property, plant and equipment 6 136.927 127.348

Goodwill 8 470.408 583.285

Other intangible assets 9 289.213 289.833

Equity-accounted investees 11 8.943 5.664

Non-current fi nancial assets 12 41.185 83.883

Deferred tax assets 36 200.017 116.040

Total non-current assets 1.146.693 1.206.053

Non-current assets held for sale 10 Y 17 1.655 7.656

Inventories 13 70.167 231.149

Other fi nancial assets 14 72.806 76.237

Derivatives 14 1.701 777

Current tax assets 36 28.341 50.057

Trade and other receivables 15 1.401.382 1.615.490

Cash and cash equivalents 16 341.554 293.850

Total current assets 1.917.606 2.275.216

Total assets 3.064.299 3.481.269



2 Consolidated Income Statements for the years ended 31 December 2015 and 2014 (Expressed in thousands of Euros)


Note 2015 2014

Loss for the year (641.852) (90.400)

Other comprehensive income:

Items to be reclassifi ed in profi t or loss:

Income and expense recognised directly in equity (6.333) (33.127)

Translation differences 6.569 (7.846)

Cash fl ow hedges 18 (17.919) (36.116)

Tax effect 18 5.017 10.835

Amounts transferred to the income statement 2.359 1.638

Cash fl ow hedges 18 3.276 2.129

Tax effect 18 (917) (491)

Other comprehensive loss for the year, net of tax (3.974) (31.489)

Total comprehensive loss for the year (645.826) (121.889)

Total comprehensive loss attributable to the Parent company (645.693) (123.790)

Total comprehensive income/(loss) attributable to non-controlling interests (133) 1.901

Note 2015 2014

Revenue 27 2.850.404 2.937.885

Self-constructed assets 9 34.288 59.518

Other income 28 52.131 33.258

Changes in inventories of fi nished goods and work in progress

(100.080) (188.106)

Materials and other supplies used 29 (840.615) (757.219)

Personnel expenses 30 (1.632.291) (1.399.510)

Other operating expenses 31 (799.029) (620.238)

Impairment and gains/losses on disposal of fi xed assets

32 (120.790) (43.830)

Depreciation and amortisation 6 y 9 (85.480) (64.232)

Results from operating activities (641.462) (42.474)

Finance income 10 857 11.804

Finance costs 10 (59.444) (61.253)

Share in losses of other investees 33 (5.477) (1.748)

Net fi nance cost (64.064) (51.197)

Loss of equity-accounted investees 11 (377) (3.345)

Loss before tax (705.903) (97.016)

Income tax 36 64.051 6.616

Loss for the year (641.852) (90.400)

Loss for the year attributable to the Parent (641.189) (91.908)

Profi t/(Loss) for the year attributable to non-controlling interests

18 (663) 1.508

Basic loss per share (in Euros) 19 (3,9127) (0,5609)

Diluted loss per share (in Euros) 19 (3,5045) (0,4773)



Consolidated Statements of Changes in Equity for the years ended31 December 2015 and 2014 (Expressed in thousands of Euros)

3


Capital Premium Reserves Retained earnings

Ownshares

Other own equity

instruments

Other comprehensive loss

Total Non-controlling interests Total

Exchange Differences

Cash fl ow

hedges

Balance at 01.01.2014 32.826 375.955 4.465 731.242 (1.258) 16.999 (40.024) 3.777 1.123.982 10.680 1.134.662

Distribution of 2013 profi t:

- Dividends - (55.636) - - - - (55.636) (230) (55.866)

Transactions with own shares (note 18) (2.516) - (384) - - - (2.900) - (2.900)

Acquisition from non-controlling interests (note 18)

- (291) - - - - (291) 46 (245)

Other increases and decreases (513) - 47 - - (466) 278 (188)

Other comprehensive income/(loss) for the year

- - - - (8.239) (23.643) (31.882) 393 (31.489)

Profi t/(Loss) for the year - (91.908) - - - - (91.908) 1.508 (90.400)

Balance at 31.12.2014 32.826 375.955 1.949 582.894 (1.642) 17.046 (48.263) (19.866) 940.899 12.675 953.574

Distribution of 2014 loss:

- Dividends - - - - - - (270) (270)

Transactions with own shares (note 18) 221 (1.439) - - - (1.218) - (1.218)

Acquisition from non-controlling interests (note 18)

- (48) - - - - (48) 1.380 1.332

Other increases and decreases (3.634) 3.520 - 213 - - 99 (45) 54

Comprehensive loss for the year - - - - 6.039 (10.543) (4.504) 530 (3.974)

Loss for the year - (641.189) - - - - (641.189) (663) (641.852)

Balance at 31.12.2015 32.826 375.955 (1.464) (54.823) (3.081) 17.259 (42.224) (30.409) 294.039 13.607 307.646

Share



Consolidated Statements of Cash Flow for the years ended 31 December 2015 and 2014(Expressed in thousands of Euros)

4


2015 2014

Loss for the year (641.852) (90.400)

Income tax (Note 36) (64.051) (6.616)

Loss before tax (705.903) (97.016)

Adjustments for:

-Provisions, grants and other

Grants (note 28) (42.120) (23.649)

Provisions for trade and other receivables (note 15) 127.413 59.764

Changes in trade provisions (note 26) 87.518 (30.906)

Current provision for personnel restructuring (note 26) 51.300 -

Non-current provision for personnel restructuring (note 23) 40.860 -

Losses on disposal of fi xed assets (note 32) 120.790 43.830

Other 22.892 (2.315)

408.653 46.724

-Amortisation and depreciation (notes 6 and 9) 85.480 64.232

- Loss of associates (note 11) 377 3.345

- Finance costs (note 11) 58.587 49.449

+ Dividends received 1.446 434

Operating profi t/(loss) before changes in working capital (151.360) 67.168

Changes in trade and other receivables 50.491 (52.495)

Change in inventories 153.393 179.846

Changes in trade and other payables (21.700) (2.117)

Cash fl ows from operating activities 182.184 125.234

Income tax paid (6.712) (52.615)

Net cash fl ows from operating activities 24.112 139.787

2015 2014

Payments for the acquisition of:

Property, plant and equipment (11.081) (19.855)

Intangible assets (32.907) (55.295)

Financial assets (5.719) (13.653)

Proceeds from the sale of:

Property, plant and equipment 1.010 4.963

Financial assets 565 791

Interest received 2.986 4.857

Other cash fl ows from investing activities 6.251 13.517

Cash fl ows used in investing activities (38.895) (64.675)

Changes in own shares (2.034) (6.928)

Dividends paid to non-controlling interests (520) (174)

Ordinary dividend of the Parent - (55.636)

Increase in grants 4.004 5.340

Increase/(decrease) in loans and borrowings 104.367 (42.130)

Interest paid (44.219) (46.207)

Changes in other investments 2.750 -

Net cash fl ows from (used in) fi nancing activities 64.348 (145.735)

Net increase/(decrease) in cash and cash equivalents 49.565 (70.623)

Cash and cash equivalents at beginning of the year 293.850 363.071

Effect of exchange rate fl uctuations on cash and cash equivalents (1.861) 1.402

Net increase/(decrease) in cash and cash equivalents 49.565 (70.623)

Cash and cash equivalents at year end 341.554 293.850


1. NATURE, COMPOSITION AND ACTIVITIES OF THE GROUP

The Parent of the Group, Indra Sistemas, S.A. (hereinafter the Parent), adopted its present name at an extraordinary shareholders’ meeting held on 9 June 1993. Its registered offi ce is located at Avenida Bruselas 35, Alcobendas (Madrid, Spain).

The Parent is listed on the Madrid, Barcelona, Valencia and Bilbao stock exchanges in Spain (note 18) and included in the selective IBEX 35 Index.

The statutory activity of the Parent consists of the design, development, production, integration, operation, maintenance, repair and marketing of systems, solutions and products that make use of information technology, as well as any part or component thereof and any type of related services, including the civil engineering works required for their installation, applicable to any fi eld or sector; the provision of business and management consultancy, technological consultancy and training services for any fi eld or sector and outsourcing services of activities and processes in any fi eld or sector.

The consolidated companies, their registered offi ces, activities and the percentage interest held in these companies are shown in Appendix I, which forms an integral part of the notes to the consolidated annual accounts for the year ended 31 December 2015.

The Group incorporated the following subsidiaries during the year ended 31 December 2015:

• On 9 February 2015 the Parent and the Spanish

subsidiary Indra Business Consulting, S.L.U. incorporated the Saudi company Indra Technology Solutions, Co. Ltd, subscribing and paying up 100% of the share capital of SAR 5 million (Euros 1,225 thousand).

• On 10 February 2015 the subsidiary Indra Slovakia a.s. incorporated the Slovakian company Indra Slovensko, s.r.o., subscribing and paying up 100% of the Euros 5 thousand share capital.

• On 15 July 2015 the Parent incorporated the Omani company, Indra L.L.C. and subscribed and paid up 99% of its share capital for an amount of Euros 46 thousand (OMR 20 thousand). The Spanish subsidiary, Indra Business Consulting S.L.U., subscribed the other 1%.

During the year ended 31 December 2015 the Group derecognised the following subsidiaries:

• On 20 November 2015 the Parent sold its interest in the subsidiary Soluziona, S.P. CA for Euros 93 thousand. The Parent will have the right to receive a maximum variable price for this transaction depending on the achievement of certain conditions and fi nancial variables that guarantee the viability of the business sold.

• On 28 December 2015 the subsidiary Indra Sistemas Chile, S.A. dissolved and liquidated its investee Soluziona C y S Holding, S.A.

• On 31 December 2015 the subsidiary Indra USA, Inc. was merged by absorption with the subsidiary Indra Systems, Inc.

During the year ended 31 December 2015 the Group increased its percentage ownership of the following


5



5subsidiaries, which it already controlled:

• On 14 October 2015 the Parent company acquired an additional 0.1% interest in Indra Philippines, Inc. for Euros 63 thousand (PHP 3,306 thousand), taking its ownership interest to 50.10%.

During the year ended 31 December 2014 the Group did not incorporate any subsidiaries and derecognised the following subsidiaries:

• On 31 January 2014 the subsidiary Prointec, S.A., dissolved and wound up its Irish investee Prointec Civil Engineering Consultancy Limited.

Also during the year ended 31 December 2014 the Group increased its percentage ownership of the following subsidiaries, which it already controlled:

• On 9 January 2014, the subsidiary, Indra Business Consulting S.L., acquired the remaining shares in its subsidiary Tourisme & Leisure Advisory Services, S.L. After this acquisition it owned 100% of the company and subsequently absorbed it.

• On 26 January 2014, the Parent acquired the remaining shares of its subsidiary Prointec S.A. for Euros 127 thousand. As a result of this acquisition, this company is now wholly-owned by the Group.

• On 5 June 2014 the subsidiary Advanced Logistics Group, S.A. acquired 10% of the shares of its subsidiary Europraxis-ALG Consulting Andina S.A.C for Euros 27 thousand. As a result of this acquisition, this company is now wholly-owned by the Group.

• On 6 October 2014 the Parent acquired the other 20% of the shares of its subsidiary International Financial Operational Services, S.A. (IFOS) for Euros 0.3 thousand. As a result of this acquisition, this company is now wholly-owned by the Group.

• On 27 October 2014 the subsidiary Indra Sistemas

Magreb, S.R.L. acquired the other 34% of the shares in the Moroccan affi liate, Europraxis ALG Maroc, S.R.L., for Euros 78 thousand. As a result of this acquisition, this company is now wholly-owned by the Group.

2. BASIS OF PRESENTATION AND COMPARATIVE INFORMATION

The accompanying consolidated annual accounts have been prepared by the directors of the Parent on the basis of the accounting records of Indra Sistemas, S.A. and the subsidiaries forming the Indra Group. The consolidated annual accounts for 2015 have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS-EU), and other applicable provisions in accordance with article 48 of the Spanish Code of Commerce, to present a true and fair view of the consolidated equity and consolidated fi nancial position of Indra Sistemas, S.A. and subsidiaries at 31 December 2015 and consolidated results of operations and changes in consolidated equity and cash fl ows of the Group for the year then ended.

The Group adopted IFRS-EU on 1 January 2004. The directors of the Parent consider that the consolidated annual accounts for 2015, authorised for issue on 17 March 2016, will be approved with no changes by the shareholders at their annual general meeting.

The consolidated annual accounts for 2014 were approved by the shareholders at their annual general meeting held on 25 June 2015.

Presentation and format

The fi gures disclosed in the consolidated annual accounts are expressed in thousands of Euros, the Parent’s functional and presentation currency, rounded off to the nearest thou-sand. Foreign currency transactions are translated following the principles described in note 4 x).

Relevant accounting estimates and assumptions

Relevant accounting estimates and judgements and other estimates and assumptions have to be made when applying the Group’s accounting principles to prepare the consolidated annual accounts in conformity with IFRS-EU. A summary of the items requiring a greater degree of judgement or which are more complex, or where the assumptions and estimates made are signifi cant to the preparation of the consolidated annual accounts, is as follows:

As its principal activity, the Group carries out projects commissioned by customers. The Group recognises income from contracts using the percentage of completion method. This method is based on estimating the total project costs and income, costs to complete the contract, contractual risk and other parameters. Group management reviews all estimates on an ongoing basis and adjusts them accordingly.

• Expenditure on development projects is capitalised under development costs when it is probable that the cost of the asset will be offset by future economic benefi ts. Development projects in progress are tested for impairment by discounting the expected cash fl ows over their estimated useful life. Intangible assets are amortised based on the best estimates of their useful lives. The estimation of useful lives requires a certain degree of subjectivity, and, to ensure that estimates are adequately supported, they are based on reports prepared by the corresponding technical departments.

• The Group tests goodwill for impairment on an annual basis. The calculation of the recoverable amount of a division to which goodwill has been allocated requires the use of estimates. The recoverable amount is the higher of fair value less costs to sell and value in use. The Group generally uses cash fl ow discounting methods to calculate these values. Cash fl ow discounting calculations are based on fi ve-year projections that take into consideration past experience and represent management’s best estimate of future market performance. From the fi fth year cash



5fl ows are extrapolated using individual growth rates. The key assumptions employed when determining these values include growth rates, the weighted average cost of capital, tax rates and the level of working capital (see note 8).

• The Group estimates the useful lives of property, plant and equipment and intangible assets to calculate the corresponding depreciation and amortisation expenses. Determining the useful life of assets requires estimates of expected technological developments, which implies a signifi cant degree of judgement. Factors such as technological obsolescence, the cancellation of certain projects and other changes in estimated circumstances must be taken into consideration when assessing possible impairment

• The Group makes provisions for liabilities and charges. The fi nal cost of litigation and contingencies may vary depending on the interpretation of the legislation, opinions and ultimate evaluations. Any variations in these circumstances could have a signifi cant effect on the amounts recognised under provisions for liabilities and charges.

• The Group recognises deferred tax assets for all deductible temporary differences, deductions and tax loss carryforwards available for offset provided that it is likely that the Group will have suffi cient taxable income against which these assets can be utilised. To determine the amount of the deferred tax assets to be recognised, the Group estimates the amounts and dates on which future taxable profi ts will be obtained and the reversal period of temporary differences.

• The Group is subject to regulatory and legal processes and inspections by government bodies in various jurisdictions. The Group recognises a provision if it is probable that an obligation will exist at year end which will give rise to an outfl ow of resources embodying economic benefi ts and the outfl ow can be reliably measured. Legal processes usually involve complex legal issues and are subject to substantial uncertainties. As a result, management uses

signifi cant judgement when determining whether it is probable that the process will result in an outfl ow of resources embodying economic benefi ts and estimating the amount.

• Valuation allowances for bad debts require management to exercise considerable judgement and to review individual balances based on customers’ credit ratings, current market trends, and historical analysis of bad debts at an aggregated level.

• The calculation of provisions for onerous contracts is subject to a high degree of uncertainty. The Group recognises provisions for onerous contracts when estimated total costs exceed the economic benefi ts expected to be received under the contract. These estimates are subject to change based on new information received due to the stage of completion.

Although these estimates are calculated based on the best information available at the date on which these consolidated annual accounts were prepared, future events may require changes to these estimates in future years. Any such changes would be made prospectively and the effects recognised in the consolidated annual accounts for future years.

Standards and interpretations approved by the European Union applied for the fi rst time in the consolidated annual accounts for the year ended 31 December 2015

The standards applied for the fi rst time in the consolidated annual accounts for the year ended 31 December 2015 are as follows:

• IFRIC 21 Levies. This interpretation of IAS 37 Provisions, Contingent Liabilities and Contingent Assets provides guidance on when to recognise a liability in the fi nancial statements for a government levy, other than income tax or fi nes or penalties imposed for breaches of legislation. The interpretation indicates that the liability should be recognised when the obligating event that gives rise to

the liability occurs, which is normally the activity and the date identifi ed by the legislation as the trigger of the levy, in other words, the taxable event and the tax obligation.

• Annual Improvements to IFRSs, 2011-2013 Cycle. The improvements in this cycle include amendments to four standards. Apart from a change to IFRS 1 First-Time Adoption of International Financial Reporting Standards, the following standards have been amended: IFRS 3 Business Combinations (clarifi es that IFRS 3 is not applicable to the formation of a joint arrangement in the fi nancial statements of the joint arrangement itself); IFRS 13 Fair Value (amends the scope exception for measuring the fair value of a group of fi nancial assets and fi nancial liabilities on a net basis; the portfolio exception); IAS 40 Investment Property (clarifi es that IAS 40 and IFRS 3 Investments are not mutually exclusive and that both standards might have to be applied).

The adoption of these amendments has not had a signifi cant impact on the consolidated annual accounts.

1. Indra expects to adopt the following EU-approved standards and interpretations – not effective from 1 January 2015 – as of 1 January 2016 or at a later date (none have been adopted early)

• Amendments to IAS 19: Employee Benefi ts. These simplify the accounting of employee contributions to defi ned benefi t plans that are independent of the number of years of employee service. As a result, these contributions may be recognised as a reduction in the service cost in the year in which the service is rendered, rather than attributing contributions to all years of employee service. Effective for annual periods beginning on or after 1 February 2015.

• The 2010-2012 annual amendments to IFRS. Changes are made to the following standards: IAS 16: Property, Plant and Equipment, IAS 38: Intangible Assets, IAS 24: Related Party Disclosures, IFRS 2: Share-based Payment,



5IFRS 3: Business Combinations and IFRS 8: Operating Segments. Effective for annual periods beginning on or after 1 February 2015.

• Amendment to IAS 16 and IAS 38: Acceptable depreciation and amortisation methods. The amendment clarifi es acceptable methods of depreciation and amortisation of property, plant and equipment and intangible assets, which do not include revenue-based methods. Effective for annual periods beginning on or after 1 January 2016.

• Amendment to IFRS 11 Accounting for Acquisitions of Interests in Joint Operations. The amendment specifi es how to account for the acquisition of an interest in a joint operation in which the activity of the joint operation constitutes a business. Effective for annual periods beginning on or after 1 January 2016.

• The 2012-2014 annual amendments to IFRS. The following standards are amended: IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, IFRS 7 Financial Instruments: Disclosures, IAS 19 Employee Benefi ts, IAS 34 Interim Financial Reporting. Effective for annual periods beginning on or after 1 January 2016.

• Amendment of IAS 1: Disclosure Initiative. This amendment includes various clarifi cations with regard to disclosures (materiality, aggregation, order of notes, etc.). Effective for annual periods beginning on or after 1 January 2016.

From the analysis of the new standards and amendments to be applied in years beginning on or after 1 January 2016 the Group does not expect their application to have any signifi cant impact on the consolidated annual accounts.

2. Standards and interpretations issued by the International Accounting Standards Board (IASB), pending EU approval:

• IFRS 15: Revenue from Contracts with Customers. New revenue recognition standard (replaces IAS 11, IAS 18, IFRIC 13, IFRIC 15, IFRIC 18 and SIC 31). Mandatory

application for annual periods beginning on or after 1 January 2018.

• IFRS 9 Financial instruments. Replaces the requirements in IAS 39 for classifi cation, measurement, recognition and derecognition of fi nancial assets and fi nancial liabilities, hedge accounting and impairment. Mandatory application for annual periods beginning on or after 1 January 2018.

• IFRS 16 Leases. A new standard on leases that supersedes IAS 17. Lessees shall include all leases in the statement of fi nancial position treating them as purchases on a fi nanced basis. Mandatory application for annual periods beginning on or after 1 January 2019.

• Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture. Clarifi cation on recognising gains and losses on sales or contributions of a business or an asset. No date of application has been defi ned in the European Union.

• Amendments to IFRS 10, IFRS 12 and IAS 28: Investment Entities. Clarifi cations on the exception to consolidation for investment entities. Mandatory application for annual periods beginning on or after 1 January 2016.

• Amendments to IAS 12: Recognition of deferred tax assets for unrealised losses. It clarifi es that unrealised losses on debt instruments measured at fair value (available-for-sale fi nancial instruments) for which the tax base is the cost of acquisition give rise to deductible temporary differences irrespective of whether the asset holder expects to recover the asset’s value through its sale or use. Mandatory application for annual periods beginning on or after 1 January 2017.

• Amendments to IAS 7: Disclosure Initiative. This amendment incorporates disclosure requirements relating to fi nancing activities in the statement of cash fl ows. Mandatory application for annual periods beginning on or after 1 January 2017.

At the date of authorisation of these consolidated annual

accounts, the Indra Group’s management is assessing the impact that application of these standards would have on the consolidated fi nancial statements if they are fi nally approved by the European Union. However, their impact is not expected to be signifi cant except in the cases of IFRS 9 Financial Instruments, IFRS 15 Revenue from Contracts with Customers and IFRS 16 Leases, the analyses of which have not yet been completed.

a. Comparative information

As required by IFRS-EU, these consolidated annual accounts for 2015 present comparative fi gures for the prior year.

The consolidated annual accounts for the year ended 31 December 2015 are the fi rst that the Group has prepared applying the Spanish Institute of Accountants and Auditors’ Resolution of 29 January 2016 on disclosures of average supplier payment periods in the notes to the consolidated annual accounts. Accordingly, the consolidated annual accounts for the year ended 31 December 2015 are considered to be the fi rst consolidated annual accounts solely for the purposes of the comparison requirements and the principal of consistency in connection with this new obligation, and do not therefore contain comparative fi gures (see note 25).

3. APPLICATION OF LOSSES/DISTRIBUTION OF PROFIT

The Parent’s board of directors will propose at the shareholders’ general meeting that the loss of Euros 466,181,909.77 be applied to prior years losses and that an amount of Euros 14,012,547.70 be transferred from voluntary reserves to the goodwill reserve.

The directors of the different Group companies have proposed the distribution/application of these companies’ profi ts/losses for 2015. These proposals are pending approval by the shareholders at their respective annual general meetings.



54. SIGNIFICANT ACCOUNTING PRINCIPLES

The consolidated annual accounts have been prepared in accordance with European Union-endorsed International Financial Reporting Standards (IFRS-EU).

The accounting policies set out below have been applied consistently in the periods presented in these consolidated annual accounts.

The most signifi cant principles are as follows:

Subsidiaries and business combinations

Subsidiaries are entities, including structured entities, over which the Parent, either directly or indirectly through subsidiaries, exercises control. The Parent controls a subsidiary when it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. The Parent has power over a subsidiary when it has existing substantive rights that give it the ability to direct the relevant activities. The Parent is exposed, or has rights, to variable returns from its involvement with the subsidiary when its returns from its involvement have the potential to vary as a result of the subsidiary’s performance.

A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements.

Subsidiaries are consolidated from the acquisition date until the date control ceases.

Subsidiaries are fully consolidated. Therefore, their assets, liabilities, income, expenses and cash fl ows are included in the consolidated annual accounts after adjusting and

eliminating intra-Group transactions.

As permitted by IFRS 1 First-time Adoption of International Financial Reporting Standards, the Group has recognised only business combinations that occurred on or after 1 January 2004, the date of transition to IFRS-EU, using the acquisition method. Entities acquired prior to that date were recognised in accordance with accounting principles prevailing at that time, taking into account the necessary corrections and adjustments at the transition date.The Group applied IFRS 3 Business Combinations, revised in 2008, to transactions carried out since 1 January 2010.For business combinations carried out prior to 1 January 2010, the cost of the business combination includes contingent consideration, if this is probable at the acquisition date and can be reliably estimated. Subsequent recognition of or changes to contingent consideration are recognised as a prospective adjustment to the cost of the business combination.

The Group applies the acquisition method for business combinations.

The acquisition date is the date on which the Group obtains control of the acquiree.

The consideration transferred in a business combination is calculated as the sum of the acquisition-date fair values of the assets transferred, the liabilities incurred or assumed, the equity instruments issued and any consideration contingent on future events or compliance with certain conditions in exchange for control of the acquiree. The consideration transferred excludes any payment that does not form part of the exchange for the acquired business. Since 1 January 2010, acquisition costs have been recognised as an expense when incurred.

Contingent liabilities are recognised until settlement, cancellation or expiration at the higher of the initially recognised amount, less any amounts that should be taken to consolidated profi t or loss in accordance with revenue recognition criteria, and the amount resulting from provision measurement criteria.

At the acquisition date the Group recognises the assets acquired, liabilities assumed and any non-controlling interest at fair value. Non-controlling interests in the acquiree are recognised at the proportionate interest in the fair value of the net assets acquired. These criteria are only applicable for non-controlling interests which grant entry into economic benefi ts and entitlement to the proportional part of net assets of the acquiree in the event of liquidation. Otherwise, non-controlling interests are measured at fair value or value based on market conditions. Liabilities assumed include any contingent liabilities that represent present obligations arising from past events for which the fair value can be reliably measured. The Group also recognises indemnifi cation assets transferred by the seller at the same time and following the same measurement criteria as the item that is subject to indemnifi cation from the acquiree, taking into consideration, where applicable, the insolvency risk and any contractual limit on the indemnity amount.

With the exception of lease and insurance contracts, the assets acquired and liabilities assumed are classifi ed and designated for subsequent measurement based on contractual agreements, economic terms, accounting and operating policies and any other conditions existing at the acquisition date.

The excess between the consideration given, plus the value assigned to non-controlling interests, and the value of net assets acquired and liabilities assumed, is recognised as goodwill. Any shortfall, after evaluating the consideration given, the value assigned to non-controlling interests and the identifi cation and measurement of net assets acquired, is recognised in profi t or loss.

1. Non-controlling interests

Non-controlling interests are disclosed in consolidated equity separately from equity attributable to shareholders of the Parent. Non-controlling interests’ share in consolidated profi t or loss for the year (and in consolidated total comprehensive income for the year) is disclosed separately in the consolidated income statement and



5consolidated statement of comprehensive income.

The consolidated profi t or loss for the year (consolidated total comprehensive income for the year) and changes in equity of the subsidiaries attributable to the Group and non-controlling interests after consolidation adjustments and eliminations, is determined in accordance with the percentage ownership at year end, without considering the possible exercise or conversion of potential voting rights and after discounting the effect of dividends, agreed or not, on cumulative preference shares classifi ed in equity accounts. However, Group and non-controlling interests are calculated taking into account the possible exercise of potential voting rights and other derivative fi nancial instruments which, in substance, currently give access to the returns associated with the interests held, such as entitlement to a share in future dividends and changes in the value of subsidiaries.

The excess of losses attributable to non-controlling interests incurred prior to 1 January 2010, which cannot be attributed to them as such losses exceed their interest in the equity of the subsidiary, is recognised as a decrease in equity attributable to equity holders of the Parent, except when the non-controlling interests are obliged to assume part or all of the losses and are in a position to make the necessary additional investment. Profi ts obtained in subsequent years are allocated to equity attributable to equity holders of the Parent until the non-controlling interest’s share in prior years’ losses is recovered.

As of 1 January 2010, profi t and loss and each component of other comprehensive income are allocated to equity attributable to shareholders of the Parent and to non-controlling interests in proportion to their investment, even if this results in a balance receivable from non-controlling interests. Agreements entered into between the Group and non-controlling interests are recognised as a separate transaction.

The increase and reduction of non-controlling interests in a subsidiary in which control is retained is recognised as an equity instrument transaction. Consequently, no new acquisition cost arises in increases nor is a gain recorded on

reductions, rather, the difference between the consideration transferred or received and the carrying amount of the non-controlling interests is recognised in the reserves of the investor, without prejudice to reclassifying consolidation reserves and reallocating other comprehensive income between the Group and the non-controlling interests. When a Group’s investment in a subsidiary diminishes, non-controlling interests are recognised at their share of the consolidated net assets, including goodwill.

The Group recognises put options on investments in subsidiaries extended to non-controlling interests at the date of acquisition of a business combination as an advance purchase of the investments, recognising a fi nancial liability at the present value of the best estimate of the payable, which forms part of the consideration given.

In subsequent years any variation in the fi nancial liability, including the fi nancial component, is recognised in reserves. Any discretionary dividends paid to non-controlling interests before the exercise date of the options are recognised as a distribution of profi t. If the options are ultimately not exercised, the transaction is recognised as a sale of investments to non-controlling interests.

Puttable fi nancial instruments and obligations arising on liquidation, which qualify for classifi cation as equity instruments in the separate fi nancial statements of the subsidiaries, are classifi ed as fi nancial liabilities in the consolidated annual accounts and not as non-controlling interests.

2. Other aspects relating to the consolidation of subsidiaries

Transactions and balances with Group companies and unrealised gains or losses have been eliminated on consolidation. Nevertheless, unrealised losses have been considered as an indicator of impairment of the assets transferred.

The subsidiaries’ accounting policies have been adapted to

Group accounting policies for like transactions and events in similar circumstances.

The annual accounts or fi nancial statements of the subsidiaries used in the consolidation process have been prepared as of the same date and for the same period as those of the Parent.

Joint arrangements

Joint arrangements are those in which there is a contractual agreement to share the control over an economic activity, in such a way that decisions about the relevant activities require the unanimous consent of the Group and the remaining venturers or operators. The existence of joint control is assessed considering the defi nition of control over subsidiaries.

1. Joint ventures

Investments in joint ventures are accounted for using the equity method described in c) below.

2. Joint operations

For joint operations, the Group recognises the assets, including its share of any assets held jointly, the liabilities, including its share of any liabilities incurred jointly with the other operators, the revenue from the sale of its share of the output from the joint operation and the expenses, including its share of any expenses incurred jointly, in the consolidated annual accounts.

In sales or contributions by the Group to the joint operation, it recognises the resulting gains and losses only to the extent of the other parties’ interests in the joint operation. When such transactions provide evidence of a reduction in net realisable value or an impairment loss of the assets transferred, such losses are recognised in full.

In purchases by the Group from a joint operation, it only



5recognises the resulting gains and losses when it resells the acquired assets to a third party. However, when such transactions provide evidence of a reduction in net realisable value or an impairment loss of the assets, the Group recognises its entire share of such losses.

The Group’s acquisition of an initial and subsequent share in a joint operation is recognised following the same criteria used for business combinations, at the percentage of ownership of each individual asset and liability. However, in subsequent acquisitions of additional shares in a joint operation, the previous share in each asset and liability is not subject to revaluation.

Equity-accounted investees

Associates are entities over which the Parent, either directly or indirectly through subsidiaries, exercises signifi cant infl uence. Signifi cant infl uence is the power to participate in the fi nancial and operating policy decisions of the investee but is not control or joint control over those policies. The existence of potential voting rights that are exercisable or convertible at the end of each reporting period, including potential voting rights held by the Group or other entities, are considered when assessing whether an entity has signifi cant infl uence.

Investments in associates are accounted for using the equity method from the date that signifi cant infl uence commences until the date that signifi cant infl uence ceases.

The Group’s share of the profi t or loss of an associate from the date of acquisition is recognised as an increase or decrease in the value of the investments, with a credit or debit to share of the profi t or loss for the year of equity-accounted investees in the consolidated income statement.

Intangible assets

1. Goodwill

Goodwill (see note 8) on business combinations carried

out subsequent to the transition date (1 January 2004) is initially measured at an amount equivalent to the difference between the cost of the business combination and the Group’s share of the net fair value of the assets acquired and liabilities and contingent liabilities assumed from the acquired subsidiary or joint venture.

Goodwill is not amortised but is tested for impairment annually or more frequently where events or circumstances indicate that an asset may be impaired. Goodwill on business combinations is allocated to the cash-generating units (CGUs) that are expected to benefi t from the synergies of the business combination and the criteria described in section g) of this note are applied. After initial recognition, goodwill is measured at cost less any accumulated impairment losses.

Impairment losses on goodwill are not reversed in subsequent years.

2. Other intangible assets

Intangible assets are stated at cost of acquisition or production, less any impairment losses resulting from annual testing, as described in section g) of this note. Intangible assets include the following:

• Development expenses: which represent direct costs incurred in developments specifi cally attributable to individual projects.

Expenditure on research, development and innovation projects (R&D and innovation) are recognised directly in the consolidated income statement for the corresponding period, except for costs incurred on development projects, which are capitalised under development costs when the following conditions exist:

» The expenditure to carry out the project can be measured reliably.

» The allocation, assignment and timing of costs for each project are clearly defi ned.

» There is evidence of the project’s technical success, in terms of direct operation or sale to a third party of the results thereof once completed and if a market exists.

» The economic and commercial feasibility of the project is reasonably assured.

» Financing to develop the project, the availability of adequate technical and other resources to complete the development and to use or sell the resulting intangible asset are reasonably assured.

There is an intention to complete the intangible asset for its use or sale.

Development expenses are only capitalised when there is certainty that a project will generate future income to offset the costs capitalised for the project.

The Company performs the corresponding impairment testing on development projects in case any impairment has to be recognised. The development costs are capitalised under development costs as soon as they meet the criteria for capitalisation. Once the development is completed, the Group reclassifi es these costs to computer software and begins to amortise them.

Development costs (which are transferred to computer software) are amortised once the asset is available for use after the development process and the applicable quality tests and controls have been completed.

• Computer software: expenses incurred on the acquisition of computer software or licences, as well as costs related to programs developed by the Group, are capitalised when these assets contribute to the generation of income.

Amounts capitalised do not include costs incurred to modify or upgrade programs used by the Group or expenses arising from review, consultancy and training services rendered by third parties in relation to the implementation of computer software.



5 Computer software acquired in business combinations

is recognised at the transaction-date fair value of the identifi able asset.

The cost of completed development projects is

transferred to computer software and amortised on the basis of the estimated useful life of the asset.

• Industrial property: is stated at cost and amortised over the period of use stipulated therein.

Industrial property acquired in business combinations is recognised at the transaction-date fair value of the identifi able asset.

Useful life and amortisation rates: The Company assesses whether the useful life of each intangible asset acquired is fi nite or indefi nite. An intangible asset is regarded as having an indefi nite useful life when there is no foreseeable limit to the period over which the asset will generate net cash infl ows.

Intangible assets with fi nite useful lives are amortised by allocating the depreciable amount of an asset on a systematic basis over its useful life, by applying the following criteria:

Amortisation method

Estimated years of useful

life

Patents, licences, and trademarks

lineal 10 years

Computer software lineal 1 to 10 years

The depreciable amount of intangible assets is measured as the cost of the asset, less any residual value.The Company considers that the residual value of the assets is zero unless:

a) There is a commitment by a third party to purchase the asset at the end of its useful life.

b) There is an active market for the intangible asset and:

I. residual value can be determined by reference to that market; and

II. it is probable that such a market will exist at the end of the asset’s useful life.

The Company reviews the residual value, useful life and amortisation method for intangible assets at each fi nancial year end. Changes to initially established criteria are accounted for as a change in accounting estimates.

Intangible assets with indefi nite useful lives are not amortised, but are instead tested for impairment on an annual basis or whenever there is an indication that the intangible asset may be impaired.

Property, plant and equipment

Property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. Costs of expansion, modernisation or improvements which increase the productivity, capacity or effi ciency or extend the useful lives of assets are capitalised as an increase in the cost of those assets. Repair and maintenance costs are recognised in the consolidated income statement when incurred.

The cost of property, plant and equipment or, where applicable, the value assigned by independent experts is depreciated on a straight-line basis over the following average estimated useful lives:

Estimated years of useful life

Buildings 50

Technical installations, machinery and other installations

10

Furniture 10

Information technology equipment 4

Motor vehicles 7

Other property, plant and equipment 10

The Group reviews residual values, useful lives and depreciation methods at each fi nancial year end. Changes to initially established criteria are accounted for as a change in accounting estimates.

Investment property

Investment property, including assets under construction or development, is property which is totally or partially held to earn rentals or for capital appreciation or both. Investment property is initially recognised at cost, including transaction costs.

After initial recognition, investment property is measured using the cost or deemed cost criteria applicable to property, plant and equipment. Details of the depreciation methods and useful lives are provided in that note.

Lease income is recognised using the criteria described in section h).

Impairment of non-fi nancial assets subject to amortisation or depreciation

The Group evaluates whether there are indications of



5possible impairment losses on non-fi nancial assets subject to amortisation or depreciation to verify whether the carrying amount of these assets exceeds the recoverable amount.

The Group tests goodwill, intangible assets with indefi nite useful lives and intangible assets that are not yet ready to enter service for potential impairment at least annually, irrespective of whether there is any indication that the assets may be impaired.

The recoverable amount of the assets is the higher of their fair value less costs of disposal and their value in use.

An asset’s value in use is measured based on the future cash fl ows the Group expects to derive from use of the asset, expectations about possible variations in the amount or timing of those future cash fl ows, the time value of money, the price for bearing the uncertainty inherent in the asset and other factors that market participants would refl ect in pricing the future cash fl ows the Group expects to derive from the asset.

Negative differences resulting from comparison of the carrying amounts of the assets with their recoverable amount are recognised in profi t or loss.

Recoverable amount is determined for each individual asset, unless the asset does not generate cash infl ows that are largely independent of those from other assets or groups of assets. If this is the case, recoverable amount is determined for the cash-generating unit (CGU) to which the asset belongs.

This year the Group uses detailed calculations made in a preceding year of the recoverable amount of a CGU to which an intangible asset of indefi nite life or goodwill has been included, provided the following requirements are met:a) The assets making up that unit have not changed signifi cantly since the most recent recoverable amount calculation;

b) the most recent recoverable amount calculation resulted

in an amount that exceeded the carrying amount of the unit by a substantial margin; and

c) based on an analysis of events that have occurred and circumstances that have changed since the most recent recoverable amount calculation, the likelihood that a current recoverable amount determination would be less than the asset’s carrying amount is remote.

If there is an indication of impairment of a CGU to which goodwill has been unable to be allocated, the Group tests the CGU for impairment fi rst, excluding any goodwill and recognises, where applicable, any impairment loss at CGU level. The Group then tests the group of CGUs to which goodwill has been allocated for impairment and recognises, where applicable, any impairment loss at CGU group level.

In testing a CGU for impairment, the Group identifi es all the corporate assets that relate to the CGU. If a portion of the corporate assets can be allocated on a reasonable and consistent basis to the CGU, the Group compares the carrying amount of the CGU, including the corporate asset, with its recoverable amount and, where applicable, recognises any impairment loss at CGU level. If the Group cannot allocate a portion of the corporate assets on a reasonable and consistent basis to the CGU, it compares the carrying amount of the unit, excluding the corporate asset, with its recoverable amount and recognises, where applicable, any impairment loss at CGU level. The Group identifi es the smallest group of CGUs to which the carrying amount of the corporate asset can be allocated on a reasonable and consistent basis and compares the carrying amount of the group of CGUs, including the corporate assets, with the recoverable amount and recognises, where applicable, the impairment loss at CGU group level.

Impairment losses for cash-generating units are allocated fi rst to reduce the carrying amount of goodwill allocated to the unit and then to the other assets of the unit pro rata with their carrying amounts. The carrying amount of each asset may not be reduced below the highest of its fair value less costs of disposal, its value in use and zero.

At the end of each reporting period the Group assesses whether there is any indication that an impairment loss recognised in prior periods may no longer exist or may have decreased. Impairment losses on goodwill are not reversible. Impairment losses on other assets are only reversed if there has been a change in the estimates used to calculate the recoverable amount of the asset.

A reversal of an impairment loss is recognised as a credit to profi t or loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss may not exceed the carrying amount that would have been determined, net of depreciation or amortisation, had no impairment loss been recognised.

A reversal of an impairment loss for a CGU is allocated to the assets of each unit, except goodwill, pro rata with the carrying amounts of those assets. The carrying amount of an asset may not be increased above the lower of its recoverable amount and the carrying amount that would have been disclosed, net of amortisation or depreciation, had no impairment loss been recognised.

Leases

Leases in which the Group assumes substantially all the risks and rewards incidental to ownership are classifi ed as fi nance leases. At the inception of a fi nance lease, the Group recognises an asset and liability for the lower of the fair value of the leased asset and the present value of the minimum lease payments. Interest is expensed using the effective interest method.

All other leases are operating leases and the leased assets are not recognised in the consolidated statement of fi nancial position. Lease payments are recognised as an expense on a straight-line basis over the lease term.

Contingent rents, if any, are recognised as an expense when it is probable that they will be incurred.



5Financial instruments

1. Classifi cation of fi nancial instruments

Financial instruments are classifi ed on initial recognition as a fi nancial asset, a fi nancial liability or an equity instrument in accordance with the economic substance of the contractual arrangement and the defi nitions of a fi nancial asset, a fi nancial liability and an equity instrument in IAS 32 Financial Instruments: Presentation.

Financial instruments are classifi ed into fi ve categories for measurement purposes: 1) Financial assets and fi nancial liabilities at fair value through profi t or loss; 2) loans and receivables; 3) held-to-maturity investments; 4) available-for-sale fi nancial assets; and 5) fi nancial liabilities at amortised cost. Financial instruments are classifi ed into different categories based on the nature of the instruments and management’s intentions on initial recognition.

a. Financial assets and fi nancial liabilities at fair value through profi t or loss

Financial assets and fi nancial liabilities at fair value through profi t or loss are those classifi ed as held for trading on initial recognition.

A fi nancial asset or fi nancial liability is classifi ed as held for trading if:• It is acquired or incurred principally for the purpose of

selling or repurchasing it in the near term;

• It forms part, on initial recognition, of a portfolio of identifi ed fi nancial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profi t-taking; or

• It is a derivative, except for a derivative that is a designated and effective hedging instrument or a fi nancial guarantee contract.

Equity instruments which do not have a quoted price in an active market and for which fair value cannot be measured reliably are not classifi ed in this category.

Financial assets and fi nancial liabilities at fair value through profi t or loss are initially recognised at fair value. Transaction costs directly attributable to the acquisition or issue are recognised as an expense when incurred.

After initial recognition, they are recognised at fair value through profi t or loss. Fair value is not reduced by transaction costs incurred on sale or disposal.

b. Loans and receivables

Loans and receivables are non-derivative fi nancial assets with fi xed or determinable payments that are not quoted in an active market, other than those classifi ed in other fi nancial asset categories. These assets are initially recognised at fair value, including transaction costs, and are subsequently measured at amortised cost using the effective interest method.

Subsequent to initial recognition, trade and other receivables are measured at amortised cost using the effective interest method, provided they have a fi xed maturity date of more than one year.

The Group provides for bad debts when there is objective evidence of impairment losses.

c. Available-for-sale fi nancial assets

The Group classifi es in this category non-derivative fi nancial instruments that are designated as such or which do not qualify for recognition in the aforementioned categories.

Available-for-sale fi nancial assets are initially recognised at fair value plus transaction costs directly attributable to the acquisition.Following initial recognition, fi nancial assets classifi ed in this category are measured at fair value and any gain or loss is taken to other comprehensive income. On disposal of the

fi nancial assets, amounts recognised in other comprehensive income or the impairment loss are reclassifi ed to profi t or loss.

d. Financial assets carried at cost

Investments in equity instruments for which the fair value cannot be reliably measured and derivative instruments that are linked to and must be settled by delivery of such unquoted equity instruments, are measured at cost. Nonetheless, if the fi nancial assets can be reliably measured subsequently, they are accounted for at fair value and any subsequent gain or loss is recognised in equity.

The Group recognises income from investments in equity instruments measured at cost only to the extent that retained earnings accumulated since the acquisition are distributed. Dividends received in excess of such earnings are regarded as a recovery of the investment and are therefore recognised as a reduction in the carrying amount of the investment.

e. Financial liabilities

Financial liabilities, including trade and other payables, which are not classifi ed at fair value through profi t or loss, are initially recognised at fair value less transaction costs that are directly attributable to the issue of the fi nancial liability. After initial recognition, liabilities classifi ed under this category are measured at amortised cost using the effective interest method.

f. Convertible bonds

When compound fi nancial instruments are issued with equity and liability components, the equity component is assigned the residual amount, after deducting from the fair value of the instrument as a whole the liability component, including any derivative fi nancial instrument. The liability component is measured at the fair value of a similar instrument that does not have an associated equity component. Transaction costs relating to the issue of compound fi nancial instruments are allocated to the



5components based on their relative carrying amount upon classifi cation.

g. Reverse factoring

The Group has contracted reverse factoring facilities with various fi nance companies to manage payments to suppliers. Trade payables settled under the management of fi nance companies are recognised under trade and other payables in the statement of fi nancial position until they are settled, repaid or have expired.

The consideration given by the fi nancial institutions in exchange for the right to fi nance the customers of the Group is recorded in the consolidated income statement when accrued.

Payables to fi nancial entities as a result of the transfer of trade liabilities are recognised as trade payables advanced by banks under trade and other payables in the statement of fi nancial position.

When the Company requests a deferral of the initial payment term of trade payables, these debts are derecognised and a fi nancial liability is recognised under loans and borrowings in the statement of fi nancial position.

h. Offsetting principles

A fi nancial asset and a fi nancial liability are offset only when the Group currently has the legally enforceable right to offset the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

2. Impairment and uncollectibility of fi nancial assets

An impairment loss is recognised on a fi nancial asset or group of fi nancial assets when there is objective evidence of impairment as a result of one or more events occurring after initial recognition of the asset.

The Group recognises impairment and uncollectibility of loans and receivables and debt instruments by recognising an allowance account for fi nancial assets. When impairment and uncollectibility are considered irreversible, their carrying amount is eliminated against the allowance account. The impairment loss is reversed against the allowance account.

a. Impairment of available-for-sale fi nancial assets

When a decline in the fair value of an available-for-sale fi nancial asset has been accounted for directly in other comprehensive income, the cumulative loss is reclassifi ed to profi t and loss when there is objective evidence that the asset is impaired. The impairment loss recognised in profi t or loss is calculated as the difference between the acquisition cost, net of any reimbursements or repayment of the principal, and the present fair value, less any impairment loss previously recognised in profi t or loss for the year.

Impairment losses for investments in equity instruments are not reversed through profi t or loss. Subsequent increases in the fair value of equity instruments are recognised in other comprehensive income.

If the fair value of debt instruments increases and the increase can be objectively related to an event occurring after the impairment loss was recognised, the increase is recognised in profi t or loss up to the amount of the previously recognised impairment loss and any excess is accounted for in other comprehensive income.

b. Derecognition of fi nancial assets

The Group applies the criteria for derecognition of fi nancial assets to part of a fi nancial asset or part of a group of similar fi nancial assets or to a fi nancial asset or group of similar fi nancial assets.

Financial assets are derecognised when the contractual rights to the cash fl ows from the fi nancial asset expire or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. Where the Group retains the contractual rights to receive cash

fl ows, it only derecognises fi nancial assets when it has assumed a contractual obligation to pay the cash fl ows to one or more recipients and if the following requirements are met:

• Payment of the cash fl ows is conditional on their prior collection.

• The Group is unable to sell or pledge the fi nancial asset; and

• The cash fl ows collected on behalf of the eventual recipients are remitted without material delay and the Group is not entitled to reinvest the cash fl ows. This criteria is not applicable to investments in cash or cash equivalents made by the Group during the settlement period from the collection date to the date of required remittance to the eventual recipients, provided that interest earned on such investments is passed on to the eventual recipients.

If, as a result of a transfer, a fi nancial asset is derecognised in its entirety, the new fi nancial asset, fi nancial liability or servicing liability are recognised at fair value.

If the transferred asset is part of a larger fi nancial asset, the previous carrying amount of the larger fi nancial asset is allocated between the part that continues to be recognised and the part that is derecognised, including servicing assets, based on the relative fair values of those parts on the date of the transfer.

On derecognition of a fi nancial asset in its entirety, the difference between the carrying amount and the sum of the consideration received, net of transaction costs, including any new asset obtained less any new liability assumed and any cumulative gain or loss deferred in other comprehensive income, is recognised in profi t or loss.

If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the fi nancial asset, it determines whether it has retained control of the fi nancial asset. In this case:



5• If the Group has not retained control, it derecognises the

fi nancial asset and recognises separately as assets or liabilities any rights and obligations created or retained in the transfer.

• If the Group has retained control, it continues to recognise the fi nancial asset to the extent of its continuing involvement therein and recognises an associated liability. The extent of the Group’s continuing involvement in the transferred asset is the extent to which it is exposed to changes in the value of the transferred asset. The transferred asset and the associated liability are measured on a basis that refl ects the rights and obligations that the Group has retained. The associated liability is measured in such a way that the carrying amount of the transferred asset and the associated liability is equal to the amortised cost of the rights and obligations retained by the Group, if the transferred asset is measured at amortised cost, or to the fair value of the rights and obligations retained by the Group, if the transferred asset is measured at fair value. The Group continues to recognise any income arising on the transferred asset to the extent of its continuing involvement and recognises any expense incurred on the associated liability. Recognised changes in the fair value of the transferred asset and the associated liability are accounted for consistently with each other in profi t and loss or equity, following the general recognition criteria described previously, and are not offset.

If the Group retains substantially all the risks and rewards of ownership of an asset, the consideration received is recognised as a liability.

c. Derecognition and modifi cations of fi nancial liabilities

The Group derecognises all or part of a fi nancial liability when it either discharges the liability by paying the creditor, or is legally released from primary responsibility for the liability either by process of law or by the creditor.

The exchange of debt instruments between the Group and the counterparty or substantial modifi cations of initially

recognised liabilities are accounted for as an extinguishment of the original fi nancial liability and the recognition of a new fi nancial liability, providing the instruments have substantially different terms.

The Group considers the terms to be substantially different if the discounted present value of the cash fl ows under the new terms, including any fees paid net of any fees received and discounted using the original effective interest rate, is at least 10 per cent different from the discounted present value of the remaining cash fl ows of the original fi nancial liability.

The difference between the carrying amount of a fi nancial liability, or part of a fi nancial liability, extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profi t or loss.

3. Fair value hierarchy for fi nancial and non-fi nancial assets and liabilities

Fair value is defi ned as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The measurement is based on the assumption that the transaction takes place in the principal market, i.e. the market with the highest volume or asset or liability activity. In the absence of a principal market, the transaction is assumed to take place in the most advantageous market, i.e. the market that maximises the amount received on the sale of an asset or minimises the amount payable for transferring the liability.

The fair value of an asset or a liability shall be measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The market participants are independent of each other, they are knowledgeable, are able to enter into a transaction for the asset or liability and they are willing to enter into a transaction for the asset or liability, i.e. they are motivated

but not forced or otherwise compelled to do so.

The assets and liabilities measured at fair value can be classifi ed into the following levels:

• Level 1: Financial instruments for which fair value is calculated considering quoted prices of identical assets or liabilities in active markets.

• Level 2: The fair value is calculated considering directly or indirectly observable market inputs other than the quoted prices in Level 1. The methods and assumptions used to calculate fair value at this level, by class of asset or liability, take into consideration estimated future cash fl ows, discounted to present value using the zero coupon interest rate curves of each currency at the last working day of each reporting date and this amount is converted to Euros taking into account the exchange rate on the last working day of each reporting period. All the measurements described are made using internal instruments.

• Level 3: The fair value is calculated considering inputs, for assets or liabilities, that are not based on observable market data. To measure assets and liabilities at fair value the Indra Group uses valuation techniques appropriate to the circumstances and for which suffi cient information is available to calculate the fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

The fair value of the different derivative fi nancial instruments is calculated using the following procedures:

• For derivatives quoted on an organised market, their quoted value at year end.

• For derivatives not quoted on organised markets, the Indra Group calculates the fair value of the fi nancial derivatives taking into consideration observable market inputs, estimating future cash fl ows discounted to present value using the zero coupon interest rate curves of each currency at the last working day of each



5reporting date, converted to Euros at the exchange rate on the last working day of each reporting period. These measurements are made using internal instruments. Once gross market value has been obtained, a debt valuation adjustment (own credit risk) and a credit valuation adjustment (counterparty credit risk) are made. The credit valuation adjustment and debt valuation adjustment are made based on the possible future exposure from the instrument (creditor or debtor position) and the risk profi le of the counterparties and that of the Indra Group. In 2015 and 2014 the value of the credit valuation and debt valuation adjustments was not signifi cant.

In the case of buildings, the fair value of non-fi nancial assets and liabilities is calculated based on independent expert appraisals and for other assets and liabilities fair value is estimated on the basis of available market prices or by discounting expected future cash fl ows if no market can be identifi ed.

Parent own shares

The Group’s acquisition of equity instruments of the Parent is recognised separately at cost of acquisition in the consolidated statement of fi nancial position as a reduction in equity, irrespective of the reason for the purchase. Any gains or losses on transactions with own equity instruments are not recognised.

The subsequent redemption of the Parent instruments entails a capital reduction equivalent to the par value of the shares. Any positive or negative difference between the purchase price and the par value of the shares is debited or credited to reserves.

Transaction costs related to own equity instruments, including issue costs related to a business combination, are accounted for as a reduction in equity, net of any tax effect.

Cash and cash equivalents

Cash and cash equivalents include cash on hand and demand deposits in fi nancial institutions. They also include

other short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignifi cant risk of changes in value. An investment normally qualifi es as a cash equivalent when it has a maturity of less than three months from the date of acquisition.

Inventories

Inventories are measured at the lower of cost on a FIFO basis and net realisable value. Work in progress includes the direct cost of labour, materials or services acquired for projects. Materials and services directly attributable to projects are measured at cost, while labour is recognised at standard cost, which does not differ signifi cantly from the actual cost.

Government grants

Non-refundable grants received by the Group to fi nance research and development costs are recognised by reducing the corresponding asset by the amount received and are taken to income in line with the amortisation of projects capitalised under other intangible assets.

Financial liabilities comprising implicit assistance in the form of below-market interest rates are initially recognised at fair value. The difference between this value, adjusted where necessary for the issue costs of the fi nancial liability and the amount received, is recognised as a government grant based on the nature of the grant awarded.

Provisions for liabilities and charges

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event; it is probable that an outfl ow of resources embodying economic benefi ts will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation.

Obligations existing at the reporting date that arose as a

result of past events, the amount and settlement date of which are not determined and which could have a negative effect on the Group’s equity are recognised as provisions for liabilities and charges under liabilities in the consolidated statement of fi nancial position at the present value of the most probable estimated amount that the Group would be obliged to disburse to settle the obligation. These provisions are measured at each reporting date based on the best available information on the consequences of the event for which they were recognised.

The amount recognised as a provision is the best estimate at the end of the reporting period of the expenditure required to settle the present obligation, taking into account all risks and uncertainties surrounding the amount to be recognised as a provision and, where the time value of money is material, the fi nancial effect of discounting provided that the expenditure to be made each period can be reliably estimated. The discount rate is a pre-tax rate that refl ects the time value of money and the specifi c risks for which future cash fl ows associated with the provision have not been adjusted at each reporting date.

Single obligations are measured using the individual most likely outcome. When the provision involves a large population of identical items, the obligation is estimated by weighting all possible outcomes by their associated probabilities. Where there is a continuous range of possible outcomes, and each point in that range is as likely as any other, the mid-point of the range is used.

The fi nancial effect of provisions is recognised as a fi nance cost in profi t or loss.

The tax effect and gains on the expected disposal of assets are not taken into account in measuring a provision.

If it is not probable that an outfl ow of resources will be required to settle an obligation, the provision is reversed. The provision is reversed against the income statement caption in which the related expense was recognised, and any surplus is accounted for in other income.



51. Provisions for restructuring costs

A provision for restructuring is recognised when the Group has a constructive obligation deriving from a detailed formal plan and it has raised a valid expectation that it will carry out the process by starting to implement the plan or announcing its main features to those affected by it. Restructuring provisions only include the direct expenditures arising from the restructuring which are not associated with the ongoing activities of the Group.

2. Provisions for onerous contracts

Provisions for onerous contracts are based on the present value of unavoidable costs, determined as the lower of the contract costs, net of any income that could be generated, and any compensation or penalties payable for non-completion.

3. Trade provisions

Trade provisions are made to cover the estimated cost of project repairs or revisions during the warranty period

Termination benefi ts

Unless there is just cause, prevailing employment law requires companies to pay termination benefi ts to employees whose services are discontinued in certain circumstances. Termination benefi ts are expensed when the decision to terminate employment is approved and announced to the affected parties.

In August 2015 the Parent started a workforce restructuring plan. The main conditions of this plan are provided in note 30.

R&D loans

R&D loans are granted to assist the Group’s research and development activities. These loans bear zero explicit interest and the repayment schedule generally exceeds fi ve years.

R&D loans are initially recognised under liabilities at the present value of the future cash fl ows, discounted using market interest rates. The difference between this value and the nominal amount of the loan is recognised as a decrease in the accrued expense. The loan is therefore treated as an operating grant if an expense has been incurred or as a capital grant if no cost has been incurred or has been capitalised.

In subsequent years the loan revaluation is recognised under fi nance income or costs.

Classifi cation of assets and liabilities

Assets and liabilities are classifi ed in the consolidated statement of fi nancial position as current and non-current, as follows:

Non-current: payables falling due more than twelve months from the date of the statement of fi nancial position, which is the Group’s normal operating cycle, and assets which are not expected to be realised, sold or consumed within this time.

Current: assets expected to be realised, sold or consumed within the Group’s normal operating cycle and payables falling due within twelve months of the date of the statement of fi nancial position.

Income tax

The income tax expense or tax income for the year comprises current tax and deferred tax.

Current tax is the amount of income taxes payable or recoverable in respect of the consolidated taxable profi t or tax loss for the period. Current tax assets or liabilities are measured at the amount expected to be paid to or recovered from the taxation authorities, using the tax rates and tax laws that have been enacted or substantially enacted at the reporting date.

Current and deferred tax are recognised as income or an expense and included in profi t or loss for the year, except to the extent that the tax arises from a transaction or event which is recognised, in the same or a different year, directly in equity, or from a business combination.

A deferred tax liability is an amount payable in the future in respect of income tax relating to taxable temporary differences, while a deferred tax asset is an amount recoverable as a result of deductible temporary differences, tax loss carryforwards or deductions pending application. Temporary differences are differences between the carrying amount of an asset or liability and its tax base.

The Group recognises tax credits for investment applying the recognition and valuation criteria for current or deferred tax assets, unless they are grants. Tax credits in the form of grants are recognised, presented and measured applying the corresponding accounting policy. For these purposes the Group considers that tax credits have the nature of a grant if they can be applied irrespective of whether tax is payable and they have substantive operating terms additional to an investment being made or maintained.

1. Recognition of deferred tax liabilities

The Group recognises all deferred tax liabilities except where:• They arise from the initial recognition of goodwill or an

asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profi t nor taxable income.

• They are associated with investments in subsidiaries, associates and joint ventures for which the Group is able to control the timing of the reversal of the temporary difference and it is not probable that the difference will reverse in the foreseeable future.



52. Recognition of deferred tax assets

The Group recognises deferred tax assets provided that:

• It is probable that suffi cient taxable profi t will be available against which they can be utilised or when tax legislation envisages the possibility of converting deferred tax assets into a receivable from public entities in the future. Nonetheless, assets arising from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profi t nor taxable income, are not recognised.

• The temporary differences are associated with investments in subsidiaries, associates and joint ventures that will reverse in the foreseeable future and suffi cient tax gains are expected to be generated against which the temporary differences can be offset.

The Group recognises the conversion of a deferred tax asset into a receivable from public entities when it becomes enforceable in accordance with prevailing tax legislation. For these purposes, the deferred tax asset is derecognised with a charge to the expense for deferred taxes and a credit to current tax is recognised for the account receivable. Likewise, the Group recognises the exchange of a deferred tax asset for government debt securities when it acquires ownership thereof.

The Group recognises the payment obligation derived from the fi nancial loan as an operating expense with a credit to payables to public entities.

It is considered probable that the Group will generate suffi cient taxable profi t to recover deferred tax assets when there are suffi cient taxable temporary differences relating to the same taxation authority and the same taxable entity, which are expected to reverse in the same tax period as the expected reversal of the deductible temporary differences or in periods into which a tax loss arising from a deductible temporary difference can be carried back or forward. If the

only future taxable profi t is derived from taxable temporary differences, the recognition of deferred tax assets arising from tax losses carried forward is limited to 70% of the deferred tax liabilities recognised.

In order to determine future taxable profi t the Group takes into account tax planning opportunities, provided it intends or is likely to adopt them.

3. Measurement of deferred tax assets and liabilities

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted. The tax consequences that would follow from the manner in which the Group expects to recover or settle the carrying amount of its assets or liabilities are also refl ected in the measurement of deferred tax assets and liabilities. For these purposes, the Group has considered the deduction for reversal of the temporary measures provided in transitional provision thirty-seven of Income Tax Law 27/2014 of 27 November 2014 as an adjustment to the tax rate applicable to the deductible temporary difference associated with the non-deductibility of amortisation and depreciation charges in 2013 and 2014, of 27 December.

The Group reviews the carrying amount of deferred tax assets at the reporting date and reduces this amount to the extent that it is not probable that suffi cient taxable profi t will be available against which to recover them.

Deferred tax assets that do not comply with the above conditions are not recognised in the consolidated statement of fi nancial position. At year end the Group reassesses whether conditions are met for recognising previously unrecognised deferred tax assets.

4. Classifi cation

Deferred tax assets and liabilities are recognised in the consolidated statement of fi nancial position under non-current assets or liabilities, irrespective of the expected date of recovery or settlement.

Earnings per share

The Group calculates basic earnings per share using the weighted average number of shares outstanding during the period. Outstanding shares are issued shares not held as own shares. Diluted earnings per share are calculated taking into account the dilutive effect of convertible instruments or instruments with an equity component.

Derivative fi nancial instruments and hedge accounting

Derivative fi nancial instruments which qualify for hedge accounting are initially measured at fair value, plus any transaction costs that are directly attributable to the acquisition, or less any transaction costs directly attributable to the issue of the fi nancial instruments. Nonetheless, transaction costs are subsequently recognised in profi t and loss providing they do not change the effectiveness of the hedge. Derivatives that do not meet these criteria are classifi ed and measured as fi nancial assets and fi nancial liabilities at fair value through profi t or loss.

The Group also records hedges of foreign currency risk of a fi rm commitment as a cash fl ow hedge.

At the inception of the hedge the Group formally designates and documents the hedging relationships and the objective and strategy for undertaking the hedges. Hedge accounting is only applicable when the hedge is expected to be highly effective at the inception of the hedge and in subsequent years in offsetting changes in fair value or cash fl ows attributable to the hedged risk, throughout the period for which the hedge was designated (prospective analysis) and the actual effectiveness, which can be reliably measured, is



5within a range of 80%-125% (retrospective analysis).

For cash fl ow hedges of forecast transactions, the Group assesses whether these transactions are highly probable and if they present an exposure to variations in cash fl ows that could ultimately affect profi t or loss.

The Group has arranged forward purchases and sales of foreign currency. These exchange rate insurance contracts are considered fi nancial derivatives and comply with conditions for hedge accounting, as follows: They are recognised as follows:

a) In the case of hedges of the exposure of the fair value of foreign currency monetary fi nancial assets and liabilities to currency risk, changes in both the market value of derivative fi nancial instruments designated as hedging instruments and the market value of the hedged item as a result of the hedged exposure are taken to the consolidated income statement.

b) In the case of cash fl ow hedges, changes in the market value of hedging derivative fi nancial instruments are recognised, to the extent that these hedges are effective, in other comprehensive income in the consolidated statement of comprehensive income during the year in which the expected transaction or fi rm commitment impacts on the consolidated income statement.

As currencies are traded on offi cial markets, the fair value of exchange rate insurance is calculated based on the quoted price of each currency at each reporting date (level 1).

The Group has also contracted interest rate hedges to eliminate or signifi cantly reduce these risks. The fair value of interest rate hedges is based on the market values of equivalent derivative fi nancial instruments at the date of the statement of fi nancial position. All interest rate hedges are also effective as cash fl ow hedges. The Group recognises the portion of the gain or loss on the measurement at fair value of a hedging instrument that is determined to be an effective hedge in recognised income and expense (level 1).

Segment reporting

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete fi nancial information is available.The Group’s activities are carried out in two main segments:

• Solutions: a wide range of systems, applications and components for compiling, processing, transmitting and presenting data, basically aimed at the control and management of complex processes. The Group’s solutions business is characterised by its customer-oriented approach and knowledge of the business, and involves a large degree of business consultancy and technology services.

• Services, including the management and operation of systems and solutions, as well as certain business processes where technology is a strategic and differentiating element.

Inter-segment pricing is determined on an arm’s length basis. The profi t or loss of each segment is measured and fund-allocation decisions are taken using the contribution margin. This margin is the gross margin of projects less the cost of sales in the markets in which the Group offers its solutions and services and costs to support the completion of projects.

For consolidation purposes, corporate functions and other activities which cannot be allocated to a specifi c segment are shown under Corporate (unallocated).

Based on the different characteristics of the geographical areas in which the Group operates, the Group’s activities have been divided into the following geographical areas: Spain, Latin America, Europe and North America, Asia, Middle East and Africa.

Revenue recognition

The Group recognises income on projects using the stage of completion method, which is based on the estimated portion of the total contract completed at the closing date. Accordingly, the total estimated profi t is distributed over the period over which the contract is carried out, based on the percentage of completion at each reporting date.The Group determines the percentage of completion of transactions, which is used as a basis for revenue recognition, as the proportion that contract costs incurred for work performed to date bear to the estimated total contract works.

Where the amounts billed exceed the income calculated by applying the percentage of total costs incurred, the difference is recognised under advances from customers. Conversely, where the amount billed is lower than the income calculated by applying the percentage of completion method, the unbilled amount is recognised under receivables in the consolidated statement of fi nancial position.

The Group regularly assesses whether any service contracts are onerous and, where applicable, recognises the necessary provisions.

Foreign currency transactions and balances

Transactions in foreign currency are translated at the spot exchange rate prevailing at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies have been translated into the functional currency at the closing rate, while non-monetary assets and liabilities measured at historical cost have been translated at the exchange rate prevailing at the transaction date. Non-monetary assets measured at fair value have been translated into the functional currency at the exchange rate at the date that the fair value was determined.

In the consolidated statement of cash fl ows, cash fl ows from foreign currency transactions have been translated



5into Euros at the exchange rates prevailing at the dates the cash fl ows occur. The effect of exchange rate fl uctuations on cash and cash equivalents denominated in foreign currencies is recognised separately in the consolidated statement of cash fl ows as effect of exchange rate fl uctuations on cash and cash equivalents held.

Exchange gains or losses on monetary fi nancial assets or fi nancial liabilities denominated in foreign currencies are recognised in profi t or loss.

Monetary fi nancial assets denominated in foreign currencies classifi ed as available for sale are measured at amortised cost in the foreign currency. Consequently, the exchange differences associated with changes in amortised cost are recognised in profi t or loss and the remainder of the change in fair value is recognised as set forth in section i).

1. Translation of foreign operations

The Group applied the exemption permitted by IFRS 1, First-time Adoption of International Financial Reporting Standards, relating to accumulated translation differences. Consequently, translation differences recognised in the consolidated annual accounts generated prior to 1 January 2004 are recognised in retained earnings. As of that date, foreign operations whose functional currency is not the currency of a hyperinfl ationary economy have been translated into Euros as follows:

• Assets and liabilities, including goodwill and net asset adjustments derived from the acquisition of the operations, including comparative amounts, are translated at the closing rate at the reporting date.

• Income and expenses, including comparative amounts, are translated at the exchange rates prevailing at each transaction date; and

• All resulting exchange differences are recognised as translation differences in other comprehensive income.

These criteria are also applicable to the translation of the fi nancial statements of equity-accounted companies, with translation differences attributable to the Group recognised in other comprehensive income.

Translation differences recognised in other comprehensive income are accounted for in profi t or loss as an adjustment to the gain or loss on the sale using the same criteria as for subsidiaries and associates.

2. Entities located in hyperinfl ationary countries

Since the sale of the subsidiary in Venezuela in 2015 the Group does not have any entities located in hyperinfl ationary countries.

Following the criteria established in IFRS-EU, the Venezuelan economy was considered as hyperinfl ationary at the 2014 close. The fi nancial statements of Group companies located in Venezuela were therefore adjusted to correct the effects of infl ation.

As required by IAS 29, monetary items were not restated, whereas non-monetary items (mainly property, plant and equipment and equity) were restated based on the Venezuelan Consumer Price Index.

The differences arising from this adjustment in 2014 were recognised in the consolidated income statement.



5

At 31 December 2014 these adjustments had a positive impact of Euros 206 thousand on the equity recognised in the consolidated statement of fi nancial position.

5. BUSINESS COMBINATIONS

The Parent did not acquire any subsidiaries in the years ended 31 December 2015 and 2014 and no business combinations are recognised at a provisional amount.

6. PROPERTY, PLANT AND EQUIPMENT

Details of this item at 31 December 2015 and 2014 are as follows:

Thousands of Euros

Balance at 31.12.14

Change in consolida-

Translation differences Additions Disposals Transfers Balance at

31.12.15

Investments:

Land 10.774 - - - (552) 5.566 15.758

Buildings 56.251 - 166 5 (1.139) 19.073 74.356

Tech. installations, mach. and other fi xtures 192.403 (635) (2.561) 5.428 (3.418) 2.665 193.882

Furniture 39.428 (193) 287 1.449 (1.361) 450 40.060

Motor vehicles 2.969 (66) (146) 476 (673) 202 2.762

Information technology equipment 67.397 (1.340) (2.346) 4.665 (2.524) 3.979 69.831

Other property, plant and equipment 11.568 (21) (1.914) 1.953 (444) (1.265) 9.877

Property, plant and equipment under construction 221 - - - (174) (47) -

380.981 (2.255) (6.514) 13.976 (10.285) 30.623 406.526

Depreciation:

Buildings (20.653) - (45) (1.530) 394 (125) (21.959)

Tech. installations, mach. and other fi xtures (140.575) 460 2.461 (13.618) 3.272 3.607 (144.393)

Furniture (26.141) 141 (306) (2.740) 957 (1.005) (29.094)

Motor vehicles (1.493) 38 59 (341) 490 (170) (1.417)

Information technology equipment (58.186) 1.266 1.445 (5.383) 2.081 (3.496) (62.273)

Other property, plant and equipment (6.585) 20 1.052 (1.165) 275 253 (6.150)

(253.633) 1.925 4.666 (24.777) 7.469 (936) (265.286)

Carrying amount:

Structure (4.3 (4.313) (4.313)

(4.313) (4.313)

Land 10.744 - - - (552) 5.566 15.758

Buildings 35.598 - 121 (5.838) (745) 18.948 48.084

Tech. installations, mach. and other fi xtures 51.828 (175) (100) (8.190) (146) 6.272 49.489

Furniture 13.287 (52) (19) (1.291) (404) (555) 10.966

Motor vehicles 1.476 (28) (87) 135 (183) 32 1.345

Information technology equipment 9.211 (74) (901) (718) (443) 483 7.558

Other property, plant and equipment 4.983 (1) (862) 788 (169) (1.012) 3.727

Property, plant and equipment under construction 221 - - - (174) (47) -

Total 127.348 (330) (1.848) (15.114) (2.816) 29.687 136.927



5Thousands of Euros

Balance at 31.12.13

Change in consolidated


31.12.14

Investments:

Land 10.774 - - - - - 10.744

Buildings 56.419 - 174 104 (72) (374) 56.251

Tech. installations, mach. and other fi xtures 206.784 (24) (14.304) 5.296 (4.355) (994) 192.403

Furniture 37.901 (17) (1.271) 2.857 (393) 351 39.428

Motor vehicles 3.432 (15) (58) 372 (593) (169) 2.969

Information technology equipment 67.774 (41) (3.563) 4.224 (1.001) 4 67.397

Other property, plant and equipment 9.892 (77) 148 4.199 (2.494) (100) 11.568

Property, plant and equipment under construction 849 - 45 175 (714) (134) 221

393.795 (174) (18.829) 17.227 (9.622) (1.416) 380.981

Depreciation:

Buildings (19.080) - (105) (1.336) 72 (204) (20.653)

Tech. installations, mach. and other fi xtures (144.091) - 12.541 (13.409) 3.404 980 (140.575)

Furniture (24.227) 1 743 (2.847) 288 (99) (26.141)

Motor vehicles (1.825) - 111 (348) 447 122 (1.493)

Information technology equipment (56.944) 23 3.561 (6.239) 837 576 (58.186)

Other property, plant and equipment (6.850) - (76) (1.319) 1.522 138 (6.585)

(253.017) 24 16.775 (25.498) 6.570 (1.513) (253.633)

Carrying amount:

Land 10.744 - - - - - 10.744

Buildings 37.339 - 69 (1.232) - (578) 35.598

Tech. installations, mach. and other fi xtures 62.693 (24) (1.763) (8.113) (951) (14) 51.828

Furniture 13.674 (16) (528) 10 (105) 252 13.287

Motor vehicles 1.607 (15) 53 24 (146) (47) 1.476

Information technology equipment 10.830 (18) (2) (2.015) (164) 580 9.211

Other property, plant and equipment 3.042 (77) 72 2880 (972) 38 4.983

Property, plant and equipment under construction 849 - 45 175 (714) (134) 221

As in 2014, additions to technical installations, machinery and other fi xtures in 2015 are mainly due to the ongoing fi tting-out of the Parent’s new offi ces.

A loss of Euros 1,160 thousand was generated on disposals in 2015, which is recognised in the consolidated income statement (see note 32).

The transfers recognised in 2015 under land and buildings consist of the buildings received in relation to the rights to compensation included in the agreement concluding the transaction entered into by the Group in 2014 with Politec Participaçoes, Ltda (Polipar) and its shareholders (note 12c). The impairment recognised in the year is due to the difference between the appraisal value of the building and its carrying amount. This valuation was performed by an independent expert calculating the fair value according to hierarchical level 2.



5Details of assets acquired through fi nance leases, by type of asset, at 31 December 2015 and 2014 are as follows:

Thousands of Euros

2015 2014

Investments:

Tech. installations, mach. and other fi xtures 8.476 8.420

Furniture - 98

Information technology equipment 2.046 2.173

Other property, plant and equipment 400 406

10.922 11.097

Depreciation:

Buildings - -

Tech. installations, mach. and other fi xtures (5.508) (4.172)

Furniture - (65)

Information technology equipment (1.309) (740)

Other property, plant and equipment (51) 115

(6.868) (5.092)

Carrying amount:

Buildings - -

Tech. installations, mach. and other fi xtures 2.968 4.248

Furniture - 33

Information technology equipment 737 1.433

Other property, plant and equipment 349 291

Total 4.054 6.005

The main fi nance lease agreement corresponds to the acquisition of a fl ight simulator in 2011 by the Parent amounting to Euros 8,476 thousand. This agreement expires in September 2018. The interest rate of the agreement is 4.3%. Euros 3,600 thousand is payable at the present date (a current portion of Euros 1,260 thousand and a non-current portion of Euros 2,340 thousand). These amounts include the purchase option of Euros 116

thousand but not the fi nance costs.

Details of minimum lease payments and the present value of fi nance lease liabilities, by maturity date, are as follows:

2015

Minimum payments Interest Purchase

option

Up to 1 year 1.889 231 -

Between 1 and 5 years

2.605 87 116

4.494 318 116

2014

Minimum payments Interest Purchase

option

Up to 1 year 2.079 260 -

Between 1 and 5 years

4.337 229 515

6.416 489 515

Finance lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default.

At 31 December 2015 fully depreciated property, plant and equipment amount to Euros 160,685 thousand (Euros 143,332 thousand at 31 December 2014).

The Group has taken out insurance policies to cover the risk of damage to its property, plant and equipment. The coverage of these policies is considered suffi cient.

7. INVESTMENT PROPERTY

On 29 April 2014 the subsidiary Prointec, S.A. sold all its investment property for Euros 2,700 thousand, recognising a loss of Euros 485 thousand in the corresponding item in the consolidated income statement. (Note 32)

8. GOODWILL

For impairment testing purposes, goodwill has been allocated to the Group’s cash-generating units (CGUs) in accordance with their respective business segment and the country of operation.

A summary of goodwill is as follows:



5Thousands of Euros

2015 2014

Cost Accumulated impairment

Carrying amount Cost Accumulated

impairmentCarrying amount

Indra EWS 14.462 - 14.462 14.462 - 14.462

Indra ATM 29.447 - 29.447 29.447 - 29.447

Brazil 99.259 (99.259) - 101.558 (16.656) 84.902

Indra Italy 20.504 - 20.504 20.504 - 20.504

Indra Navia 26.136 - 26.136 26.136 - 26.136

Consulting Group 36.608 (13.139) 23.469 36.608 (4.055) 32.553

BPO Group 58.925 - 58.925 58.925 - 58.925

Azertia Group 66.701 (8.582) 58.119 67.475 (8.582) 58.893

Prointec Group 30.437 (3.576) 26.861 30.479 (2.682) 27.797

Soluziona Group 166.761 (3.000) 163.761 169.455 (2.831) 166.624

Other 61.620 (12.896) 48.724 63.956 (914) 63.042

Total 610.860 (140.452) 470.408 619.005 (35.720) 583.285

Thousands of Euros

31.12.14 Translation differences Disposals Impairment 31.12.15

Indra EWS 14.462 - - - 14.462

Indra ATM 29.447 - - - 29.447

Brazil 84.902 (2.299) - (82.603) -

Indra Italy 20.504 - - - 20.504

Indra Navia 26.136 - - - 26.136

Consulting Group 32.553 - - (9.084) 23.469

BPO Group 58.925 - - - 58.925

Azertia Group 58.893 (774) - - 58.119

Prointec Group 27.796 (41) - (894) 26.861

Soluziona Group 166.624 (1.323) (1.371) (169) 163.761

Other 63.043 (2.337) - (11.982) 48.724

Total 583.285 (6.774) (1.371) (104.732) 470.408



5Thousands of Euros

31.12.13 Translation differences Disposals Impairment 31.12.14

Indra EWS 14.462 - - - 14.462

Indra ATM 29.447 - - - 29.447

Brazil 100.408 1.150 - (16.656) 84.902

Indra Italy 20.504 - - - 20.504

Indra Navia 28.364 (2.228) - - 26.136

Consulting Group 36.608 - - (4.055) 32.553

BPO Group 58.925 - - - 58.925

Azertia Group 59.229 (336) - - 58.893

Prointec Group 28.734 (44) - (894) 27.796

Soluziona Group 167.099 (475) - - 166.624

Other 62.163 880 - - 63.043

Total 605.943 (1.053) (21.605) 583.285

In the years ended 31 December 2015 and 2014, there were neither additions to this item in the consolidated statement of fi nancial position nor changes to the CGUs to which the goodwill was assigned.

Key assumptions used in projections

The Group periodically measures the recoverability of the goodwill included in the above table by discounting the expected future cash fl ows of the various cash generating units (CGUs) to which the goodwill is assigned based on the business plans.

The assumptions on which these cash fl ow projections are based are past experience and reasonable forecasts of the business plans of the Group’s different cash-generating units. These forecasts are contrasted with market growth forecasts according to different specialised sources, taking into account the company’s position in the market and any strategic aspects that could lead to changes in this position (innovation, new market openings, etc.).

The assumptions used to calculate the recoverable value of each signifi cant existing CGU are as follows:



5Year-on-year growth rate Post tax discount rate Residual growth rate Residual EBIT margin Working capital (days)

2015 2014 2015 2014 2015 2014 2015 2014 2015 2014

Indra EWS (0,5 %) (0.5 %) 7,91 % 8,36 % 1,00 % 1,00 % 23,68 % 27,23 % (19) (155)

Indra ATM 0,0 % 1,8 % 7,91 % 7,80 % 1,91 % 2,00 % 12,02 % 10,36 % 139 127

Brazil 7,7 % 12,4 % 12,30 % 11,93 % 4,93 % 4,96 % 6,96 % 7,55 % 91 93

Indra Italy 7,7 % 9,6,% 7,62 % 8,17 % 1,54 % 1,70 % 10,33 % 9,56 % 100 120

Indra Navia 3,3 % 2,3 % 6,25 % 6,85 % 2,82 % 2,70 % 10,96 % 9,83 % 80 102

Consulting Group 6,9 % 5,8 % 8,02 % 8,22 % 1,50 % 1,50 % 8,74 % 10,69 % 108 158

BPO Group 3,1 % 3,0 % 7,77 % 7,94 % 1,91 % 2,00 % 10,39 % 10,09 % 37 27

Azertia Group 1,9 % 3,1 % 7,77 % 8,07 % 1,91 % 2,00 % 10, 80% 10,35 % 37 55

Prointec Group 10,3 % 6,7 % 8,14 % 8,39 % 1,91 % 2,00 % 13,72 % 10,36 % 142 96

Soluziona Group 6,7 % 7,9 % 8,40 % 8,40 % 2,00 % 2,00 % 8,95 % 9,29 % 82 91

In all cases sensitivity analyses are performed in relation to the discount rate used and the residual growth rate, to verify that reasonable changes in these assumptions would not have an impact on the possible recovery of the goodwill recognised. Sensitivity analyses are also conducted on the main assumptions: sales, margins, working capital and residual EBIT.

The main variations in the assumptions used to calculate the value in use of each impaired CGU are as follows:

• Brazil CGU: after the results obtained in Brazil, in 2015 the Group approved a new company strategy so that it is more selective with regard to the projects carried out, focusing on projects with higher added value. Consequently the expected sales growth in coming years has been adjusted downwards to 7.7% (year-on-year growth rate 2014-2019). This growth is in line with that expected in the Information Technology sector in this period. Estimated EBIT has also been reduced by 1.33 percentage points in the last year of the period (from 8.3% to 7%) to adapt it to the new business circumstances, which is also affected

by macro-economic conditions in the country. Also the discount rate has increased from 11.93% to 12.30% due to

the interest rate hikes in Brazil.

Given that the recoverable amount of the Brazil CGU is less than its carrying amount at 31 December 2015 impairment has been recognised for the difference; Euros 82,603 thousand for goodwill, which has been totally written down and Euros 7,396 thousand for other intangible assets of the CGU (note 9).

• Consultancy Group CGU: the main variation is a 2 p.p. reduction in annual EBIT in line with the fall in profi tability in 2015.

• Portugal CGU: the main variation is a reduction in the year-on-year revenue growth rate, which declines from 5.4% at 31 December 2014 to 2.2% at 31 December 2015, which furthermore is applied to 22% lower sales based on the approved business plan.

To calculate their present value cash fl ows are discounted at a post-tax rate that considers the specifi c risks affecting the assets as well as cash fl ow risks not contemplated, such as country risk. This rate is calculated using the capital asset pricing model (CAPM). The data used in these calculations come from prestigious and independent external information sources and the results are compared with the rates used by independent fi nancial analysts when valuing comparable businesses. The post-tax rates used in 2015 ranged from 6.25% to 8.40%.

The projections are for a period of fi ve years. From the sixth year onwards the cash fl ows are those that compose the terminal value and are estimated as income in perpetuity at a constant growth rate (residual growth rate) on a normalised cash fl ow that refl ects the CGU’s operations in perpetuity. The residual growth rate is estimated for each CGU taking into account the nature of the business and forecast long-term infl ation in the activity area of each CGU, comparing this information with external sources. Growth rates of 1% to 4.93% were used in the projections made in 2015.

Income (5 years)



5The normalised cash fl ow used as the base to calculate the terminal value is determined by making the following adjustments to the cash fl ow in the fi fth year:

“g” is the residual growth rate

(1) The investment in working capital is calculated based on residual growth.

The percentage that the discounted amount of the terminal value represents compared to the recoverable amount of the most signifi cant goodwill in 2015 and 2014 is as follows:

2015 2014

Indra EWS 76 % 69 %

Indra ATM 75 % 77 %

Brazil 66 % 73 %

Indra Italy 86 % 79 %

Indra Navia 85 % 80 %

Consulting Group 82 % 80 %

BPO Group 75 % 76 %

Azertia Group 69 % 72 %

Prointec Group 76 % 76 %

Soluziona Group 78 % 78 %

Sales Normalised cash fl ow = Sales Year 5 x (1+g)

Operating expenses Normalised cash fl ow = Operating expenses Year 5 x (1+g)

Depreciation and amortisation Normalised cash fl ow = Depreciation and amortisation Year 5

Investment Normalised cash fl ow = Depreciation and amortisation Normalised cash fl ow

Investment in working capital Normalised cash fl ow = Days working capital Year 5 / 365 x Sales Year 5 x g (1)

Tax rate Normalised cash fl ow = Tax rate Year 5

Normalised cash fl ow = (Sales – Operating expenses – Investment – Investment in working capital – Taxes) Normalised cash fl ow



5Details of the carrying and recoverable amounts of the most signifi cant CGUs, including goodwill, at 31 December 2015 and 2014, are as follows:

2015 Thousands of Euros

Carrying amount (1)

Recoverable amount (2)

Difference (2)-(1)

Indra EWS 14.462 186.122 171.660

Indra ATM 50.048 75.258 25.210

Brazil 133.893 133.893 -

Indra Italy 37.869 78.236 40.366

Indra Navia 40.871 132012132.223 91.352

Consulting Group 35.869 45.906 10.037

BPO Group 81.554 158.927 77.374

Azertia Group 75.734 144.484 68.750

Prointec Group 57.672 115.573 57.901

Soluziona Group 267.751 441.697 173.946


Carrying amount (1)

Recoverable amount (2)

Difference (2)-(1)

Indra EWS 14.462 217.024 202.562

Indra ATM 48.670 66.214 17.544

Brazil 225.589 225.589 -

Indra Italy 47.951 71.871 23.920

Indra Navia 47.803 196.853 49.050

Consulting Group 58.684 58.684 -

BPO Group 71.520 133.111 61.591

Azertia Group 82.548 143.162 60.614

Prointec Group 61.222 110.982 49.760

Soluziona Group 286.960 454.668 167.708

The result of the sensitivity analysis of the impairment tests on the goodwill allocated to the CGUs is as follows:

2015

WACC variation Residual growth rate

Impact on recoverable amount of CGUs: -1 p.p. +1 p.p. -0,5 p.p. +0,5 p.p.

Indra EWS 34.860 (25.910) (10.372) 11.990

Indra ATM 15.799 (11.241) (3.473) 4.104

Brazil 21.182 (16.192) (3.320) 3.803

Indra Italy 18.309 (13.017) (4.201) 4.954

Indra Navia 55.901 (30.565) (13.369) 17.936

Consultancy Group 9.685 (7.060) (2.036) 2.374

BPO Group 33.702 (23.794) (9.147) 10.853

Azertia Group 28.595 (20.226) (7.750) 9.195

Prointec Group 23.732 (17.100) (5.361) 6.296

Soluziona Group 89.589 (64.946) (20.978) 24.532

2014

WACC variation Residual growth rate

Impact on recoverable amount of CGUs: -1 p.p. +1 p.p. -0,5 p.p. +0,5 p.p.

Indra EWS 35.244 (26.683) (11.625) 13.320

Indra ATM 14.587 (10.252) (3.185) 3.787

Brazil 39.697 (29.622) (7.893) 9.113

Indra Italy 14.635 (10.643) (2.941) 3.434

Indra Navia 31.081 (18.973) (7.313) 9.315

Consultancy Group 11.245 (8.270) (2.153) 2.499

BPO Group 28.441 (20.156) (7.885) 9.335

Azertia Group 28.443 (20.337) (7.386) 8.711

Prointec Group 22.222 (16.132) (5.191) 6.073

Soluziona Group 92.224 (66.835) (21.299) 24.909



52015

Sales variation EBIT margin Residual EBIT Change in days of working capital

Impact on recoverable amount of CGUs: -5,0 % -1 p.p. -1 p.p. +10 días

Indra EWS (9.575) (7.914) (5.946) (2.228)

Indra ATM (2.640) (6.534) (5.128) (1.831)

Brazil (4.432) (22.829) (16.941) 10.919

Indra Italy (3.120) (8.705) (6.926) (2.577)

Indra Navia (5.793) (12.666) (11.027) (2.876)

Consulting Group (1.639) (5.941) (4.623) (1.693)

BPO Group (6.838) (14.790) (11.684) (4.071)

Azertia Group (5.855) (11.993) (9.480) (3.301)

Prointec Group (4.177) (8.854) (6.920) (2.552)

Soluziona Group (16.957) (52.350) (41.086) (15.556)

2014

Sales variation EBIT margin Residual EBIT Change in days of working capital

Impact on recoverable amount of CGUs: -8,0 % -1 p.p. -1 p.p. +10 días

Indra EWS (18.595) (7.319) (5.396) (2.144)

Indra ATM (3.714) (6.804) (5.369) (1.854)

Brazil (9.721) (32.617) (24.782) (15.157)

Indra Italy (3.693) (8.252) (6.464) (2.614)

Indra Navia (6.170) (10.369) (8.750) (2.512)

Consulting Group (2.776) (5.877) (4.559) (1.691)

BPO Group (9.552) (13.042) (10.236) (3.713)

Azertia Group (8.957) (13.081) (10.339) (3.736)

Prointec Group (6.389) (11.151) (8.709) (3.262)

Soluziona Group (26.848) (52.149) (40.884) (15.486)

This sensitivity analysis shows that the most important CGUs present no signifi cant risks associated with reasonably possible variations in fi nancial variables and operational variables, considered on an individual basis.

In 2015, based on the calculations performed, impairment of Euros 89,999 thousand was recognised on the Brazil CGU (as its recoverable amount was lower than its carrying amount at 31 December 2015). Euros 82,603 thousand of this amount was in respect of goodwill, which was written down entirely and Euros 7,396 thousand on other intangible assets of the CGU (note 9). In the Consultancy CGU impairment of Euros 9,084 thousand was recognised and in the Others CGU impairment totalling Euros 11,982 thousand was recognised, of which Euros 8,848 thousand is for Indra Portugal. All this impairment is recognised under other losses on non-current assets in the income statement (see note 32).

In 2014 the Brazil CGU and the Consultancy CGU suffered impairment of Euros 16,656 thousand and Euros 4,055 thousand, respectively.

Details are provided below of the amount by which the value assigned to key assumptions must be changed so that the recoverable amount is equal to the carrying amount of each CGU.



52015

WACC Residual growth rate

Assumption Value to equal carrying amount Assumption Value to equal

carrying amount

Indra EWS 7,91 % 58,58 % 1,00 % -

Indra ATM 7,91 % 10,75 % 1,91 % (5,68 %)

Brazil 12,30 % 12,30 % 4,93 % 4,93 %

Indra Italy 7,62 % 12,49 % 1,54 % (14,94 %)

Indra Navia 6,25 % 13,52 % 2,82 % (20,09 %)

Consulting Group 8,02 % 9,55 % 1,50 % (2,03 %)

BPO Group 7,77 % 13,11 % 1,91 % (9,72 %)

Azertia Group 7,77 % 13,58 % 1,91 % (11,68 %)

Prointec Group 8,14 % 13,71 % 1,91 % (23,28 %)

Soluziona Group 8,40 % 12,08 % 2,00 % (7,62 %)

2015

Sales variation EBIT margin Working capital (days)

Value to equal carrying amount Assumption Value to equal

carrying amount Assumption Value to equal carrying amount

Indra EWS (89,64 %) 23,68 % 1,99 % (19) 752

Indra ATM (47,74 %) 12,02 % 8,16 % 139 276

Brazil - 6,96 % 6,96 % 91 91

Indra Italy (64,49 %) 10,33 % 5,69 % 100 257

Indra Navia (78,85 %) 10,96 % 3,75 % 80 398

Consulting Group (30,62 %) 8,74 % 7,05 % 108 168

BPO Group (56,57 %) 10,39 % 5,16 % 37 227

Azertia Group (58,83 %) 10,80 % 5,06 % 37 246

Prointec Group (69,31 %) 13,72 % 7,18 % 142 369

Soluziona Group (51,27 %) 8,95 % 5,63 % 82 194

* *Datum normalised year



52014

WACC Residual growth rate

Assumption Value to equal carr-ying amount Assumption Value to equal carr-

ying amount

Indra EWS 8,36 % 121,92 % 1,00 % -

Indra ATM 7,80 % 10,06 % 2,00 % (3,51 %)

Brazil 11,93 % 11,93 % 4,96 % 4,96 %

Indra Italy 8,17 % 10,98 % 1,70 % (7,36 %)

Indra Navia 6,85 % 11,06 % 2,70 % (8,02 %)

Consulting Group 8,22 % 8,22 % 1,50 % 1,50 %

BPO Group 7,94 % 12,67 % 2,00 % (7,16 %)

Azertia Group 8,07 % 12,53 % 2,00 % (8,10 %)

Prointec Group 8,39 % 13,02 % 2,00 % (12,62 %)

Soluziona Group 8,40 % 11,72 % 2,00 % (6,51 %)

2014

Variación Ventas Margen EBIT Días de circulante

Value to equal carr-ying amount Assumption Value to equal

carrying amount Assumption Value to equal carrying amount

Indra EWS (87,1 %) 27,2 % (0,4 %) (155) 857

Indra ATM (42,1 %) 10,4 % 7,5 % 127 232

Brazil - 8,3 % 8,3 % 88 88

Indra Italy (51,8 %) 9,6 % 6,7 % 120 212

Indra Navia (63,6 %) 9,8 % 5,1 % 102 297

Consulting Group - 10,7 % 10,7 % 158 158

BPO Group (51,6 %) 10,1 % 5,4 % 27 193

Azertia Group (54,1 %) 10,4 % 5,7 % 55 218

Prointec Group (62,3 %) 10,4 % 5,9 % 96 249

Soluziona Group (50,0 %) 9,3 % 6,1 % 91 199

*Datum normalised year



59. OTHER INTANGIBLE ASSETS


Thousands of Euros

Balance at 31.12.14


Group


31.12.15

Investments:

Industrial property 39.306 - (27) - - - 39.279

Computer software 179.059 (6) (603) 714 (841) 147.248 325.571

Development expenses 248.447 - (1.853) 34.288 - (141.189) 139.693

Other intangible assets 23.858 - (139) 16 (26) (2.681) 210.028

490.670 (6) (2.622) 35.018 (867) 3.378 525.571

Amortisation

Industrial property (11.388) - 27 (274) - 1 (11.634)

Computer software (77.155) 5 604 (56.423) 885 135 (131.949)

Development expenses (8.914) - 820 (1.483) - (411) (9.988)

Other intangible assets (13.746) 1 17 (2.523) 26 3.201 (13.024)

(111.203) 6 1.468 (60.703) 911 (2.926) (166.595)

Grants

Development expenses (70.491) - - (9.382) 37.265 - (42.608)

(70.491) - - (9.382) 37.265 - (42.608)

Provisions

Industrial property - (593) (5470) - - (6.063)

Computer software - - - - (18.956) (18.956)

Development expenses (10.956) - - - - 18.956 -

Other intangible assets (187) - (210) (1.926) - 187 (2.136)

(19.143) - (803) (7.396) - 187 (27.155)

Carrying amount:

Industrial property 27.918 - (593) (5.744) - 1 21.582

Computer software 101.904 (1) 1 (55.709) 44 128.427 174.666

Development expenses 150.086 - (1.033) 23.423 37.265 (122.644) 87.097

Other intangible assets 9.925 1 (332) (4.433) - 707 5.868

Total 289.833 - (1.957) (42.463) 37.309 6.491 289.213



5Thousands of Euros

Balance at 31.12.13


Group


31.12.14

Investments:

Industrial property 39.200 - 106 - - - 39.306

Computer software 116.666 (730) 348 192 (3.418) 66.001 179.059

Development expenses 256.417 (21) (126) 59.518 (595) (66.746) 248.447

Other intangible assets 24.293 (253) 749 3 (30) (904) 23.858

436.576 (1.004) 1.077 59.713 (4.043) (1.649) 49.670

Amortisation

Industrial property (10.035) - 11 (1.363) - (1) (11.388)

Computer software (45.101) 357 (46) (34.145) 458 1.322 (77.155)

Development expenses (7.645) 21 130 (822) 178 (776) (8.914)

Other intangible assets (12.193) - (355) (2.404) - 1.206 (13.746)

(74.974) 378 (260) (38.734) 636 1.751 (111.203)

Grants

Development expenses (75.676) - - (13.124) 18.309 - (70.491)

(75.676) - - (13.124) 18.309 - (70.491)

Provisions:

Development expenses - - - (18.956) - - (18.956)

Other intangible assets - - - (187) - - (187)

- - - (19.143) - - (19.143)

Carrying amount:

Industrial property 29.165 - 117 (1.363) - (1) 27.918

Computer software 71.565 (373) 302 (33.953) (2.960) 67.323 101.904

Development expenses 173.096 - 4 26.616 17.892 (67.522) 150.086

Other intangible assets 12.100 (253) 394 (2.588) (30) 302 9.925

Total 285.926 (626) 817 (11.288) 14.902 102 289.833

During 2015 and 2014, the Group performed the impairment tests required under accounting standards, which revealed the need to recognise impairment of Euros 18,865 thousand on the energy market Commercial Management project (see note 32). In 2015 this development has been transferred to computer software and amortisation has commenced.

In 2015, as described in note 8, impairment of Euros 7,396 thousand came to light on intangible assets recognised in 2011 as a result of the acquisition of Politec Tecnología da Informacao, S.A. (see note 8) when estimating the recoverable amount of the Brazil CGU.

The most signifi cant groupings of development projects and computer software capitalised, excluding the impact of grants extended, are as follows:



5Thousands of Euros

2015 2014

Investments (1):

Banking core 33.029 33.029

Healthcare market software development 15.172 15.172

Insurance market platform development 30.321 30.321

Development of air surveillance system (Atlante) 21.272 20.631

Internal SAP software 18.151 18.151

Energy market sales management systems 77.720 75.368

Earth observation software and satellite communication systems 6.170 5.513

Railway and interurban traffi c control development 17.934 17.439

Self-protection systems and onboard sensors 23.933 14.602

Airline revenue accounting systems 14.095 12.840

Security systems 8.230 7.479

Defence surveillance systems 5.193 3.116

Surveillance and air traffi c control systems 7.030 6.985

Simulator systems 1.598 1.598

Remotely piloted aircraft (RPA) systems 13.487 12.155

Smart grid solutions 9.953 9.656

303.288 284.055



5Thousands of Euros

2015 2014 Estimated years of amortisation (2)

Accumulated amortisation:

Banking core (9.921) (6.727) 1 to 10 years

Healthcare market software development (5.036) (3.795) 1 to 10 years

Insurance market platform development (6.064) (3.032) 10

Internal SAP software (6.171) (4.284) 10

Energy market sales management systems (1.469) - 10

Railway and interurban traffi c control development (3.611) - 1 to 5 years

Airline revenue accounting systems (2351) - 1 to 5 years

Smart grid solutions (1.848) - 1 to 5 years

(45.023) (22.055)

Accumulated impairment:

Energy market sales management systems (18.956) (18.956)

(18.956) (18.956)



5Thousands of Euros

2015 2014

Carrying amount:


Healthcare market software development 10.136 11.377

Insurance market platform development 24.257 27.289

Development of air surveillance system (Atlante) 21.272 20.631

Internal SAP software 11.980 13.867

Energy market sales management systems 57.295 56.412

Earth observation software and satellite communication systems 2.317 3.586

Railway and interurban traffi c control development 14.323 17.439

Self-protection systems and onboard sensors 23.562 14.231

Airline revenue accounting systems 14.095 12.840


Defence surveillance systems 5.193 3.116

Surveillance and air traffi c control systems 4.679 6.985

Simulator systems 862 1.598



Total 239.309 243.044

(1) The amortisation of all current developments is expected to have started

by 2016 year end.

(2) The groupings of projects comprise many projects with different useful

lives on an individual basis. Therefore, in one grouping a project could be

amortised in the same year it is capitalised while other projects in that

grouping could have useful lives of 10 years.

These projects are likely to generate future economic benefi ts that will offset the cost of the assets recognised.

In 2015, as in 2014, the Parent continued investing in development in all areas of activity, particularly in the area of fi nancial institutions and in the energy market. A total amount of Euros 34,288 thousand was capitalised in 2015 (Euros 59,518 thousand in 2014). The Parent recognised impairment of Euros 18,956 thousand in 2014 as a result of the annual review of the business plans associated with the main intangible assets. This impairment is in respect of energy market investments as new, more conservative, estimates were used for the commercial performance. In 2015 this development has been transferred to computer software and amortisation has commenced.

The most signifi cant transfers recognised under computer software in 2015 and 2014 are related to the following groupings:

Thousands of Euros

Project 2015 2014

Energy market sales management systems 77.720 -

Railway and interurban traffi c control development

15.012 -

Smart grid solutions 8.167 -

Surveillance and air traffi c control systems 5.597 -

Healthcare market software development - 15.172

Insurance market platform development - 30.321

Security systems - 1.244

Certain capitalised development costs have been fi nanced or subsidised by various public authorities through the relevant public entities. Details are provided below of the projects that received the most signifi cant grants in 2015 and 2014 (Euros 42,608 thousand and Euros 70,491 thousand, respectively):



5Thousands of Euros

Project 2015 2014




Railway and interurban traffi c control development

2.599 4.557

Self-protection systems and onboard sensors

2.552 2.418

Development of air surveillance system (Atlante)

1.833 1.833

Earth observation software and satellite communication systems

1.831 5.485


Healthcare market software development - 3.187

Surveillance and air traffi c control systems - 2.122

Simulator systems - 1.145

In 2015 and 2014, industrial property includes the following assets acquired from third parties for a total amount of Euros 39,279 thousand (Euros 39,306 thousand in 2014):

• Software maintenance rights acquired by the Parent for Euros 23,170 thousand in 2010.

• Industrial property of Euros 13,711 thousand recognised on the acquisition of Politec Tecnología da InformaÇao, S.A. in 2011.

Details of the amortisation rates of intangible assets are as follows:

Thousands of Euros

Balance at 31.12.15

Costs incurred internally Acquisitions from third parties

Finite useful life

Amortisation rate

Indefi nite useful life

Finite useful life

Amortisation rate

Carrying amount

Industrial property 21.582 - - 19.949 1.633 10 %

Computer software 174.666 173.200 10-100% - 1.466 25 %

Development expenses 87.097 87.087 20% - 10 10-25 %

Other intangible assets 5.868 199 - - 5.669 10 %

289.213 260.486 19.949 8.778

Thousands of Euros

Balance at 31.12.14

Costs incurred internally Acquisitions from third parties

Finite useful life

Amortisation rate

Indefi nite useful life

Finite useful life

Amortisation rate

Carrying amount

Industrial property 27.918 - - 19.948 7.970 10 %

Computer software 101.904 100.125 10-100% - 1.779 25 %

Development expenses 150.086 149.444 20% - 642 10-25 %

Other intangible assets 9.925 - - - 9.925 10 %

289.833 249.569 19.948 20.316



5At 31 December 2015 fully amortised intangible assets amount to Euros 105,816 thousand (Euros 61,240 thousand at 31 December 2014).

In 2015 a loss of Euros 99 thousand (Euros 1,063 thousand in 2014) was generated on disposals, which was recognised in the consolidated income statement (see note 32).

The Group has taken out insurance policies to cover the risks to which some of its intangible assets are exposed. The coverage of these policies is considered suffi cient.

10. FINANCIAL INSTRUMENTS

The classifi cation of fi nancial assets (except investments in associates) by class and maturity date in 2015 and 2014 is as follows:


Financial assets:Nature / Category Note Available-for-sale

fi nancial assetsLoans and

receivablesHedging

derivatives

Other investments in non-Group companies 12 16.593 - -

Other assets receivable 12 - 2.867 -

Other fi nancial assets 12 - 21.725 -

Non-current 16.593 24.592 -

Guarantees and deposits 14 - 2.112 -

Derivatives 14 - - 1.701

Other fi nancial assets 1414, 15 y 16 - 1.429.627 -

Current - 1.431.739 1.701

Total 16.593 1.456.331 1.701


Financial assets:Nature / Category Note Available-for-sale

fi nancial assetsLoans and

receivablesHedging

derivatives

Other investments in non-Group companies 12 15.872 - -

Derivatives 12 - - 14

Other assets receivable 12 - 42.991 -

Other fi nancial assets 12 - 25.006 -

Non-current 15.872 67.997 14

Guarantees and deposits 14 - 4.866 -

Derivatives 14 - - 777

Other fi nancial assets 1414, 15 y 16 - 1.653.015 -

Current - 1.657.881 777

Total 15.872 1.725.878 791



5Available-for-sale fi nancial assets

Available-for-sale fi nancial assets consist of investments in unlisted companies which, because their market value cannot be reliably determined, were measured at acquisition cost or for a lower amount in the event of any impairment.

Loans and receivables

As its principal activity, the Group carries out projects commissioned by customers. The Group recognises income and expenses on contracts using the percentage of completion method. This method is based on estimating the total project costs and income, costs to complete the contract, contractual risk and other parameters.

Following the established procedure, Indra’s project managers periodically make estimates to verify whether the main technical and economic assumptions of the projects in their portfolio are being met. In this analysis special attention is paid to the projects that are most likely to deviate from plan and therefore have a negative fi nancial impact (see note 15).

The classifi cation of fi nancial assets by class and maturity date in 2015 and 2014 is as follows:


Financial liabilities:Nature / Category Debts and payables Hedging derivatives

Loans and borrowings 20 724.372 -

Bonds and other marketable securities 20 237.543 -

Derivatives 21 - 11.437

Other fi nancial liabilities 21 20.946 -

Non-current payables/fi nancial liabilities 982.861 11.437


Bonds and other marketable securities 24 729 -


Other fi nancial liabilities 25 y 26 1.402.004 -

Current payables/fi nancial liabilities 1.481.381 30.936

Total 2.464.242 42.373


Financial liabilities:Nature / Category Debts and payables Hedging derivatives



Derivatives 20 y 21 - 8.785

Other fi nancial liabilities 20 y 21 145.546 -

Non-current payables/fi nancial liabilities 847.929 8.785




Other fi nancial liabilities 25 y 26 1.325.097 -

Current payables/fi nancial liabilities 1.455.959 18.493

Total 2.303.888 27.278



5As currencies are traded on offi cial markets, the fair value of exchange rate insurance is calculated based on the quoted price of each currency at each reporting date (level 1).

The Group has also contracted interest rate hedges to eliminate or signifi cantly reduce these risks. The fair value of interest rate hedges is based on the market values of equivalent derivative fi nancial instruments at the date of the statement of fi nancial position. All interest rate hedges are also effective as cash fl ow hedges. The Group recognises the portion of the gain or loss on the measurement at fair value of a hedging instrument that is determined to be an effective hedge in recognised income and expense (level 1).

Details of the characteristics of each of the liabilities are provided in the relevant note to these consolidated annual accounts.

A breakdown of the net fi nance cost recognised in the consolidated income statements for 2015 and 2014 is as follows:

Thousands of Euros

2015 2014

Finance costs for loans and borrowings 30.278 30.626

Other fi nance costs 13.283 10.114

Financial liabilities at amortised cost 922 6.291

Exchange gains 4.519 967

Total fi nance costs 59.444 61.253

Other fi nance income 857 11.804

Total fi nance income 857 11.804

The Euros 922 thousand recognised under fi nancial liabilities at amortised cost in 2015 (Euros 6,291 thousand in 2014) comprises fi nance costs from debt adjustments, mainly R&D loans with below-market interest rates.



511. EQUITY-ACCOUNTED INVESTEES


Thousands of Euros

Balance at 31.12.14

Change in consolida-ted Group

Investment Translation differences Dividends Profi t/loss Balance at

31.12.15

SAES Capital 2.272 - - - (407) 116 1.981

Eurofi ghter Simulation Systems 3.695 - - - (1.040) (29) 2.626

Euromids 395 - - - - 54 449

Iniciativas Bioenergéticas 1.508 - - - - (124) 1.384

Idetegolf 15 (15) - - - - -

Trias Beltran 8 (8) - - - - -

I3 Televisión 173 - - - - (48) 125

IESSA (4.396) 4.396 - - - - -

IRB Riesgo Operacional 425 - - - - (121) 304

A4 Essor 230 - - - - (202) 28

Tower Air Traffic System 501 - - - - - 501

Indra Sistemas de Tesorería 96 (96) - - - - -

Logistica Marítima de Tuxpan 150 - - - - - 150

Natming 3 - - - - - 3

Indra Isolux México (4) - - (9) - (9) (22)

Visión Inteligente Aplicada (69) - - 9 - (40) (100)

EFI Túneles Necaxa 38 - - 3 - 24 65

Societat Catalana Per a la Mobilitat 624 - 823 - - 2 1.449

Total 5.664 4.277 823 3 (1.447) (377) 8.943



5Thousands of Euros

Balance at 31.12.13

Change in consolidted

GroupInvestment Translation

differences Dividends Profi t/loss Transfers Balance at 31.12.14

SAES Capital 2.500 - - - (434) 206 - 2.272

Eurofi ghter Simulation Systems 3.173 - - - 522 - 3.695

Euromids 337 - - - - 58 - 395

Iniciativas Bioenergéticas 1.079 - 650 - - (221) - 1.508

Idetegolf 15 - - - - - - 15

Trias Beltran 8 - - - - - - 8

I3 Televisión - - 425 - - (382) 130 173

IESSA - - - - - (3.744) (652) (4.396)

IRB Riesgo Operacional - - - - - 99 326 425

A4 Essor 158 - - - - 72 - 230

Eólica Maritima y Portuaria (21) 21 - - - - - -

Tower Air Traffi c System 501 - - - - - - 501

Indra Sistemas de Tesorería 38 - - - - 58 - 96

Logistica Marítima de Tuxpan 150 - - - - - - 150

Romskog Utvickling AS 6 - - (6) - - - -

Natming 3 - - - - - - 3

Indra Isolux México 5 - - - - (9) - (4)

Visión Inteligente Aplicada (67) - - - - (2) - (69)

EFI Túneles Necaxa 40 - - - - (2) - 38

Societat Catalana Per a la Mobilitat

- 624 - - - - - 624

Total 7.925 645 1.075 (6) (434) (3.345) (196) 5.664

The main fi gures for the most signifi cant equity-accounted investments are provided in Appendix V.

Movement relating to investments in associates during the year ended 31 December 2015 is as follows:

• On 10 January 2015 the subsidiary Indra BPO, S.L. ratifi ed the winding up of its investee Trias Bertrán 4, S.L., generating a loss of Euros 1 thousand, which has been recognised in the consolidated income statement (note 32).

• On 22 May 2015 the Parent paid an additional Euros 25 thousand for the share capital of Societat Catalana per a la Mobilitat, S.A. On successive dates and during the year it paid a further Euros 798 thousand.

• On 16 October 2015 the Parent sold its interest in the subsidiary Indra Esteio Sistemas S.A.(IESSA), incurring a loss of Euros 145 thousand, which has been recognised in the consolidated income statement (see note 32).

• On 13 November 2015 the Parent sold its interest in the subsidiary Indra Sistemas de Tesorería, S.L., generating a gain of Euros 5 thousand, which has been recognised in the consolidated income statement (note 32).

• On 18 December 2015 the subsidiary Prointec, S.A. ratifi ed the winding up of its investee Idetegolf, S.A.



5The following movements took place in investments in associates during the year ended 31 December 2014:

• On 15 January 2014 the subsidiary Prointec, S.A. dissolved its investee Eólica Marítima y Portuaria, in which it held a 20% interest. A loss of Euros 17 thousand was incurred, which was recognised in the consolidated income statement (see note 32).

• On 31 January 2014 the subsidiary Prointec, S.A. subscribed and paid up the share capital increase carried out by Iniciativas Bioenergéticas, S.L. for Euros 650 thousand.

• On 10 October 2014 the Parent, together with three other shareholders, incorporated Societat Catalana per a la Mobilitat, S.A., holding a 25% interest. The amount paid in was Euros 624 thousand.

• On 26 December 2014 the Parent subscribed and paid up the capital increase of Euros 5 thousand, with a share premium of Euros 50 thousand and a contribution of Euros 370 thousand to offset losses, in the investee I3 Televisión, S.L.

12. NON-CURRENT FINANCIAL ASSETS

Movement in other investments during the years ended 31 December 2015 and 2014 is as follows:

Thousands of Euros

Balance at 31.12.14

Change in conslidted

Group


31.12.15

Investments:

Other non-current investments in non-Group companies

17.533 - - 884 (68) - 18.369

Non-current loans 2.932 - (242) 168 - - 2.858

Non-current security deposits 25.006 (12) (4.920) 2.180 (529) - 21.725

Cash fl ow hedges 14 - - - - (14) -

Other fi nancial assets 40.059 - (9.205) - (3.502) (27.343) 9

85.564 (12) (14.367) 3.232 (4.099) (27.357) 42.961

Impairment:

Other non-current investmentsin non-Group companies

(1681) - - (95) - - (1.776)

(1681) - - (95) - - (1.776)

Carrying amount:


15.872 - - 789 (68) - 16.593

Non-current loans 2.932 - (242) 168 - - 2.858

Non-current security deposits 25.006 (12) (4.920) 2.180 (529) - 21.725

Cash fl ow hedges 14 - - - - (14) -

Other fi nancial assets 40.059 - (9.205) - (3.502) (27.343) 9

Total 83.883 (12) (14.367) 3.137 (4.099) (27.357) 41.185



5Thousands of Euros

Balance at 31.12.13


Group


31.12.14

Investments:


15.583 - - 1.979 (9) - 17.553

Non-current loans 2.132 - (1) 815 (14) - 2.932

Non-current security deposits 24.727 (300) 188 6.309 (5.758) (160) 25.006

Cash fl ow hedges 1.943 - - - (1.929) - 14

Other fi nancial assets 28.830 (80) 303 10.020 (14) 1.000 40.059

73.215 (380) 490 19.123 (7.724) 840 85.564

Impairment:


(1681) - - - - - (1.681)

(1681) - - - - - (1.681)

Carrying amount:


13.902 - - 1.979 (9) - 15.872

Non-current loans 2.132 - (1) 815 (14) - 2.932

Non-current security deposits 24.727 (300) 188 6.309 (5.758) (160) 25.006

Cash fl ow hedges 1.943 - - - (1.929) - 14

Other fi nancial assets 28.830 (80) 303 10.020 (14) 1.000 40.059

Total 71.534 (380) 490 19.123 (7.724) 840 83.883



5Thousands of Euros

Percentage ownership

Balance at 31.12.14 Additions Disposals Balance at

31.12.15

Investments:

Safelayer Secure Comunications 15 % 476 - - 476

Galileo Sistemas y Servicios 13,45 % 138 - - 138

Hisdesat Servicios Estratégicos 7 % 7.572 - - 7.572

Prointec sub-group - 118 - - 118

Neotec 4,76 % 5.071 - - 5.071

Bansabadell Information Systems 19 % 1.184 14 - 1.198

Volcat 4,77 % 1.000 - - 1.000

Medina Capital Fund GP - 1.923 870 - 2.793

Other - 71 - (68) 3

17.553 884 (68) 18.369

Impairment:

Safelayer Secure Comunications (152) - - (152)

Galileo Sistemas y Servicios (3) - - (3)

Hisdesat Servicios Estratégicos (520) - - (520)

Prointec sub-group (6) (95) - (101)

Volcat (1.000) - - (1.000)

(1.681) (95) - (1.776)

Carrying amount:

Safelayer Secure Comunications 324 - - 324

Galileo Sistemas y Servicios 135 - - 135

Hisdesat Servicios Estratégicos 7.052 - - 7.052

Prointec sub-group 112 (95) - 17

Neotec 5.071 - - 5.071

Bansabadell Information Systems 1.184 14 - 1.198

Volcat - - - -

Medina Capital Fund GP 1.923 870 - 2.793

Other 71 - (68) 3

Total 15.872 789 (68) 16.593


Details are as follows:



5Thousands of Euros

Percentageownership


31.12.14

Investments:

Safelayer Secure Comunications 15 % 476 - - 476

Galileo Sistemas y Servicios 13,45 % 138 - - 138

Hisdesat Servicios Estratégicos 7 % 7.572 - - 7.572

Prointec sub-group - 118 - - 118

Neotec 4,76 % 5.071 - - 5.071

Bansabadell Information Systems 19 % 1.169 15 - 1.184

Volcat 4,77 % 1.000 - - 1.000

Medina Capital Fund GP - - 1.923 - 1.923

Other - 39 41 (9) 71

15.583 1.979 (9) 17.553

Impairment:

Safelayer Secure Comunications (152) - - (152)

Galileo Sistemas y Servicios (3) - - (3)

Hisdesat Servicios Estratégicos (520) - - (520)

Prointec sub-group (6) - - (6)

Volcat (1.000) - - (1.000)

(1.681) - - (1.681)

Carrying amount:

Safelayer Secure Comunications 324 - - 324

Galileo Sistemas y Servicios 135 - - 135

Hisdesat Servicios Estratégicos 7.052 - - 7.052

Prointec sub-group 112 - - 112

Neotec 5.071 - - 5.071

Bansabadell Information Systems 1.169 15 - 1.184

Volcat - - - -

Medina Capital Fund GP - 1.923 - 1.923

Other 39 41 (9) 71

Total 13.902 1.979 (9) 15.872

• On 16 March 2015 and 11 December 2015 the Parent paid Euros 441 thousand and Euros 425 thousand respectively, for the investment in Medina Capital Fund GP, LLC, complying with the investment commitment acquired of up to USD 5,000 thousand in a period of fi ve years. Medina Capital is an investment fund that specialises in investments in companies that are specialists in the fi elds of cyber security, IT infrastructures, cloud solutions and software solutions as a service.

The main transactions involving non-current investments in non-Group companies in 2014 were as follows:

• On 1 December 2014 the Parent invested Euros 1,923 thousand in Medina Capital Fund GP, LLC. The Company has a commitment to invest up to USD 5,000 thousand over 5 years.

Non-current security deposits

This item also includes deposits and guarantees placed to secure the rental of buildings and properties used by the Group and employment-related and commercial claims.

Additions include Euros 2,180 thousand (Euros 6,309 thousand in 2014) of arrangement costs relating to deposits for leased property, due to offi ce relocation. Also security deposits totalling Euros 529 thousand were derecognised (Euros 5,758 thousand in 2014).

Other fi nancial assets

At 31 December 2013 the cancellation of the liability for the variable component arising from the acquisition of Politec Tecnología da Informaçao, S.A. (now Indra Brasil Soluçoes e Servicos Tecnológicos, S.A.) in 2011, together with the recognition and materialisation in 2014 and 2013 of new contingent employment liabilities at the Brazilian subsidiary led to the execution in 2013 of contractual guarantees related to certain buildings on the part of the seller. As a result of this circumstance, Euros 36,605 thousand (Euros 27,205 thousand in 2013) was recognised



5in other non-current fi nancial assets for the estimated receivables from the difference between the contingent liabilities paid by Indra up to that date less the amount of the franchise established in the stock purchase agreement (SPA).

On 14 November 2014 Indra Sistemas, S.A., Indra Company Brasil, Ltda. and Indra Brasil Soluções e Serviços Tecnológicos, S.A. entered into a mutual consent agreement with Politec Participaçoes, Ltda (Polipar) and its shareholders. The main aspects of this agreement are as follows:

• Polipar and its shareholders recognise that no additional amount or price is payable by the Indra Group as a result of the aforementioned SPA.

• Polipar and its shareholders recognise by virtue of the SPA, that they are jointly and severally obliged to compensate the buyers as a result of the contingent liabilities incurred by the acquirees.

• To settle this compensation obligation set forth in the SPA and described above, Polipar and its shareholders agreed to transfer two buildings free of any liens to Indra Brasil Soluções e Serviços Tecnológicos, S.A

.• The parties expressly agree to waive any right or additional compensation deriving from the SPA signed in 2011 other than that mentioned in the above point.

The aforementioned buildings will be registered in the name of the Indra Group once the formal requirements to release the judicial attachments affecting the buildings and reverse their inalienable status are completed, which is when the Group will acquire legal title to these buildings.

The estimated receivables at 31 December 2014 (Euros 36,605 thousand) corresponded to the value of both buildings taken from an assessment made by an independent expert in Brazil of both buildings less the estimated costs that will be incurred in any subsequent sale.As a result of the release from the judicial attachments

and inalienable status, in 2015 the Euros 18,229 thousand corresponding to one building was transferred from other non-current fi nancial assets to property, plant and equipment (note 6). The Euros 6,024 thousand corresponding to the second building was transferred to other fi nancial assets and other current assets (note 14). This latter amount is net of the Euros 3,090 thousand of impairment recognised (note 32).

Euros 3,502 thousand (Euros 3,502 thousand in 2014) was derecognised from this item as a result of the nine-year marketing agreement arranged as part of the sale of Gibb Portugal Consultores de Engenharia, Gestado e Ambiente, S.A. and the loss was recognised in the consolidated income statement (note 33).

13. INVENTORIES

Details of inventories at 31 December 2015 and 2014 are as follows:

Thousands of Euros

2015 2014

Merchandise 204 341

Raw materials 11.939 14.495

Work in progress 58.024 216.313

Total carrying amount 70.167 213.149

Work in progress under inventories includes materials, direct labour costs, and other services acquired for projects.

During 2015 the Group has derecognised projects underway totalling Euros 103,199 thousand (Euros 138,543 thousand in 2014) due to reprogramming and program cancellations as well as changes to estimates as a result of various factors and events that occurred in 2015 and 2014 that have made their future recovery very unlikely.

Euros 71,690 thousand of this amount corresponds to

projects derecognised by the Parent (Euros 131,349 thousand in 2014).

14. OTHER FINANCIAL ASSETS, INCLUDING DERIVATIVES, AND OTHER CURRENT ASSETS

Details of other assets at 31 December 2015 and 2014 are as follows:

Thousands of Euros

2015 2014

Other receivables 14.979 11.699

Advances and loans to personnel 4.096 7.427

Public entities (note 36) 44.037 40.633

Prepayments 5.452 8.743

Current deposits 2.130 2.869

Current security deposits 2.112 4.866

Derivatives (note 37 a) 1.701 777

Total carrying amount 74.507 77.014

In 2015 Euros 6,024 thousand recognised under other receivables is due to the transfer of the receivable derived from the acquisition of Politec Tecnología da Informaçao, S.A. (now Indra Brasil Soluçoes e Servicos Tecnológicos, S.A.) (note 12c).



515. TRADE AND OTHER RECEIVABLESDetails of trade and other receivables at 31 December 2015 and 2014 are as follows:

Thousands of Euros

2015 2014

Trade receivables, non-Group 700.597 710.202

Receivables, billable production 838.148 961.298

Advances to suppliers 28.168 19.658

Other receivables 8.409 5.476

Total 1.575.322 1.696.634

Impairment (173.940) (81.144)

Total carrying amount 1.401.382 1.615.490

Provisions recognised in 2015 totalling Euros 137,340 thousand (Euros 69,646 thousand in 2014) are for receivables considered of doubtful collection by the Group due to several new events in 2015 such as lawsuits with certain clients, the worsening macro-economic conditions in some countries and more exacting milestone acceptance terms on some projects, mainly in Brazil.

At 2015 and 2014 year ends the Group derecognised receivables under non-recourse factoring agreements totalling Euros 186,763 thousand and Euros 187,129 thousand, respectively.

The transfer of risks and rewards was analysed to conclude on whether these amounts could effectively be derecognised. According to the agreements signed, the factors (various fi nancial institutions) assume the risk of insolvency and payment in arrears. Therefore, Indra does not retain the risks derived from non-payment. The nature of these fi nancial assets written off under non-recourse factoring is invoices issued for services rendered and

projects carried out by the Group.

At 31 December 2015 and 2014 the Group had past due receivables totalling Euros 392,706 thousand and Euros 363,223 thousand, respectively (see note 37b). The Group expects these amounts to be paid in under 12 months. Movement in the provision for impairment in both years was as follows:

Thousands of Euros

Balance at 31.12.14 Provisions Applications Translation

differences Reversals Balance at 31.12.15

Impairment 81.144 137.340 (28.662) (5.955) (9.927) 173.940

Thousands of Euros

Balance at 31.12.13 Provisions Applications Translation

differences Reversals Balance at 31.12.14

Impairment 30.361 69.646 (9.882) (234) (8.747) 81.144



516. CASH AND CASH EQUIVALENTS


Thousands of Euros

2015 2014

Current deposits and fi xed-income securities

62.202 5.225

Other current investments 1.588 6.787

Subtotal 63.790 12.012

Cash 277.764 281.838

Total 341.554 293.850

Cash in 2015 includes Euros 164,351 thousand in current accounts that accrue interest at an average rate of 0.27% in 2015 (Euros 145,455 thousand in 2014 earning interest at an average rate of 1.06%), which belong to the Parent. This item also comprises Euros 809 thousand (Euros 3,479 thousand in 2014) in relation to a liquidity agreement with BEKA FINANCE (note 18).

At 31 December 2015 and 2014 all the cash is unrestricted and can be used in transactions related to the Group’s activities.

17. NON-CURRENT ASSETS AND LIABILITIES HELD FOR SALE

In 2015 the land valued at Euros 5,566 thousand (Euros 7,451 thousand in 2014) included in the acquisition of Indra Brasil, S.A. and which was being sold has been transferred to property, plant and equipment (note 6) as the sale process did not go ahead.

In 2015 the Parent has reclassifi ed the investments in the subsidiaries Indra France Sas, Azertia Gestión de Centros Venezuela, S.A. and Indra Hungary LLC, totalling Euros

6,600 thousand, to this item as they were fully written off because they are being wound up. Fully written off loans granted to these subsidiaries totalling Euros 1,164 thousand have also been reclassifi ed to this item.

The balance of Euros 1,655 thousand refl ects the Parent’s interests in the subsidiaries Azertia Brasil and Azertia Puerto Rico, which are currently being liquidated and Search Informática Ltda. and Ultracom-Consultoría em Tecnología da InformaÇao Ltda that are being sold.

Liabilities held for sale comprises payables to third parties of Search Informática Ltda. and Ultracom-Consultoría em Tecnología da InformaÇao Ltda.

18. EQUITYSubscribed capital

At 31 December 2015 subscribed and paid-in share capital amounts to Euros 32,826,507.80, represented by 164,132,539 ordinary shares of Euros 0.20 par value each, represented by book entries.

The share capital has been subscribed and fully paid.All the shares are listed on the Madrid, Barcelona, Valencia and Bilbao stock exchanges. They are traded on the Organised Stock Market and listed in the selective IBEX-35 index, with a year-end share price of Euros 8.67 (Euros 8.07 at the 2014 reporting date). The average share price for the last quarter of the year was Euros 9.59 in 2015 and Euros 8.86 in 2014.

The Parent does not have a register of the percentage interests held by shareholders and can only verify its shareholding structure when this information is provided directly by shareholders or made public in compliance with prevailing legislation on signifi cant shareholdings (which generally requires the disclosure of interests exceeding 3% of share capital), or through the information provided by Iberclear when shareholders’ meetings are held.

Consequently, according to information available to the Parent, the signifi cant shareholders with an interest exceeding 3%, excluding any interest held on behalf of third parties, are as follows:

31.12.15 31.12.14

Sociedad Estatal de Participaciones Industriales (SEPI)

20,141 % 20,141 %

Corporación Financiera Alba 11,325 % 12,529 %

Fidelity Management & Research LLC 6,499 % 9,962 %

THS 3,378 % -

Telefónica 3,162 % -

Schroeder IM 3,109 % -

Bestinver 3,011 % -

Additionally Fidelity Management & Research LLC has fi nancial instruments that confer it voting rights on 6,557,439 shares, equivalent to a 3.995% interest in the share capital.



5Details of the shareholdings held directly or indirectly by members of the board of directors at 31 December 2015 are as follows:

Number of shares

Board members Class Direct Indirect. Total % of share capital

Isabel Aguilera Navarro Independent 37.102 - 37.102 0,023

Javier de Andrés González Executive 149.254 - 149.254 0,091

Juan Carlos Aparicio Pérez (1) Propietaryl 8.226 - 8.226 0,005

Daniel García-Pita Independent 61.443 12.600 74.043 0,045

Luis Lada Díaz Independent 32.703 - 32.703 0,020

Juan March de la Lastra (2) Proprietary 27.608 - 27.608 0,017

Santos Martínez-Conde

Gutiérrez-Barquín (2) Proprietary 15.677 - 15.677 0,010

Adolfo Menéndez Menéndez (1) Proprietary 9.230 - 9.230 0,006

Fernando Abril-Martorell Executive 53.838 - 53.838 0,033

Enrique de Leyva Independent 2.148 - 2.148 0,001

Ignacio Santillan del Barrio Independent 21.302 - 21.302 0,013

Rosa Sugrañes Arimany Independent 31.209 - 31.209 0,019

Alberto Terol Estabean Independent 28.159 - 28.159 0,017

Total 477.899 12.600 490.499 0,309

(1) Representing the shareholder Sociedad Estatal de Participaciones

Industriales (SEPI)

(2) Representing the shareholder Corporación Financiera Alba.



5Shares owned either directly or indirectly by members of the board of directors at 31 December 2014 were as follows:

Number of shares

Board members Class Direct Indirect Total % of share capital

Isabel Aguilera Navarro Indepedent 32.579 - 32.579 0,020

Javier de Andrés González Executive 146.317 - 146.317 0,0890,0,089

Juan Carlos Aparicio Pérez (1) Proprietary 4.184 - 4.184 0,003

Daniel García-Pita Indepedent 57.536 12.600 70.136 0,043

Luis Lada Díaz Indepedent 28.931 - 28.931 0,018

Juan March de la Lastra (2) Proprietary 23.543 - 23.543 0,014

Santos Martínez-Conde

Gutiérrez-Barquín (2) Proprietary 11.389 - 11.389 0,007

Adolfo Menéndez Menéndez (1) Proprietary 4.919 - 4.919 0,003

Javier Monzón de Cáceres Executive 403.322 - 403.322 0,246

Mónica de Oriol Icaza Indepedent 25.416 - 25.416 0,015

Ignacio Santillana del Barrio Indepedent 16.355 - 16.355 0,010

Rosa Sugrañes Arimany Indepedent 27.707 - 27.707 0,017

Alberto Terol Estabean Indepedent 22.841 - 22.841 0,014

Total 805.039 12.600 817.639 0,498

(1) Representing the shareholder Sociedad Estatal de Participaciones

Industriales (SEPI)

(2) Representing the shareholder Corporación Financiera Alba.

At 31 December 2015 the board of directors represented 52,135,433 shares or 31.76% of total shares. At 31 December 2014 the board of directors represented 54,440,120 shares or 33.17% of total shares.

At the annual general meetings of the Parent company held on 25 June 2015 and 26 June 2014, the shareholders agreed to the application of the consolidated loss for 2014 and distribution of consolidated profi t for 2013, respectively, as shown in the accompanying consolidated statements of changes in equity.

The Group manages its capital with the aim of safeguarding its capacity to continue operating as a going concern, so as to continue providing shareholder remuneration and benefi ting other stakeholders, while maintaining an optimum capital structure.

Capital management is aimed at maintaining a solid fi nancial structure that optimises the cost of capital and the availability of fi nancial resources, ensuring long-term business continuity. This conservative fi nancial policy enables the Parent to create adequate shareholder value while ensuring liquidity and its solvency.



5The Company uses the consolidated leverage ratio (the resultant ratio from dividing net fi nancial debt by total capital, obtained by adding net debt to equity) as an indicator to monitor the fi nancial position. Movement in 2015 and 2014 was as follows:

Millions of Euros

2015 2014

Net debt 699,7 662,7

Equity 307,60 953,60

Total capital 1.007,30 1.616,30

Debt ratio 69,46 % 41,00 %

Net debt is calculated by adding the amounts of current and non-current loans and borrowings on the consolidated statement of fi nancial position and then subtracting the balance of cash and cash equivalents from this sum.

Share premium

The share premium deriving from the share capital increases carried out in 2001, 2003 and 2007 is subject to the same restrictions and may be used for the same purposes as the voluntary reserves of the Parent, including conversion into share capital.

The share premium and voluntary reserves include a non-distributable portion equivalent to the amount of the statement of fi nancial position revaluation permitted by Law 9/1983 of 13 July 1983, totalling Euros 9,464 thousand at 31 December 2015 and 9,624 thousand at 31 December 2014, as well as the amount of research and development costs of the Parent not yet amortised, totalling Euros 122,684 thousand at 31 December 2015 (Euros 202,092 thousand at 31 December 2014) and any prior years’ losses.

Other reserves

Details of other reserves are as follows:

Thousands of Euros

2015 2014

Merger reserves 1.846 1.846

Other changes in equity (3.310) 103

Total (1.464) 1.949

Other own equity instruments

The change in equity due to the difference between the funds obtained in the Parent’s October 2013 bond issue (see note 20) and the fair value of the corresponding fi nancial liability, Euros 16,999 thousand in total (Euros 16,999 thousand in 2014), was recognised in this item. This amount includes the Euros 1,125 thousand embedded derivative arising from the early redemption clause.

Also Euros 260 thousand (Euros 47 thousand in 2014) were recognised in this item in respect of share-based payments resulting from the share plan for employees.

The remuneration policy established in 2014 contemplates remuneration deferred over the medium term through the delivery of Parent shares accrued from July 2014 until the end of 2016. In 2015, a total of 20,350 shares (220,536 shares in 2014) were conveyed in respect of this plan, valued at Euros 199 thousand at the conveyance date (Euros 2,310 thousand in 2014).

Exchange rate and interest rate cash fl ow hedging reserves

This item comprises the hedging reserve generated by the following:

• The effect of changes in the fair value of forward exchange contracts used to hedge highly probable future transactions or fi rm commitments.

• The effect of changes in the fair value of interest rate

swap contracts.


Thousands of Euros

2015 2014

Exchange rate insurance cash fl ow hedges (31.501) (18.599)

Interest rate cash fl ow hedges 1.092 (1.267)

Total (30.409) (19.866)

Own shares

As authorised by the shareholders at their annual general meeting, at 31 December 2015 the Parent company directly holds 347,011 treasury shares amounting to Euros 3,081 thousand (202,199 shares amounting to Euros 1,642 thousand at 31 December 2014).

Details of own shares and movement during 2015 and 2014 are as follows:

Thousands of Euros


31.12.15

Ordinary transactions

1.642 271.715 (270.276) 3.081

Thousands of Euros

Balance at 31.12.13

Additions DisposalsBalance at 31.12.14

Ordinary transactions

1.258 188.258 (187.874) 1.642



5Details of movement in shares in 2015 and 2014 are as follows:

Number of shares

% owner-ship 31.12.13 Additions % annual

volume Disposals % annual volume 31.12.14 % ownership

Used in: -Ordinary transactions

0,06 103.358 17.051.236 5,14 (16.952.395) 5,11 202.199 0,12

0,06 103.358 17.051.236 (16.952.395) 202.199 0,12

Number of shares

% owner-ship 31.12.14 Additions % annual

volume Disposals % annual volume 31.12.15 % ownership

Used in: -Ordinary transactions

0,12 202.199 28.045.163 7,84 (27.900.351) 7,80 347.011 0,21

0,12 202.199 28.045.163 (27.900.351) 347.011 0,21

On 31 July 2014 the Parent entered into a liquidity agreement with BEKA FINANCE, S.V., S.A. with the aim of boosting liquidity from transactions and stabilising the share price.

The main characteristics of this agreement are as follows:

• Contract term: 12 months

• Number of shares earmarked for the securities account associated with the agreement: 200,000

• Amount earmarked for the cash account associated with the agreement: Euros 2.3 million



5Retained earnings

Details of retained earnings are as follows:

Thousands of Euros

2015 2014

Legal reserve 6.955 6.955

Reserves in fully consolidated companies 84.925 (16.147)

Merger reserve 15.212 15.212

Reserves in equity-accounted investees 5.177 3.925

Voluntary reserves 559.172 573.341

Undistributed reserves (85.075) 91.516

Loss for the year attributable to the Parent

(641.189) (91.908)

Total (54.823) 582.894

1. Legal reserve

The Spanish Companies Act requires that the Parent transfer 10% of profi ts for the year to a legal reserve until this reserve reaches an amount equal to 20% of share capital. This reserve is not distributable to shareholders and if it is used to offset losses, in the event that no other reserves are available, the reserve must be replenished with future profi ts. Under certain conditions it may also be used to increase share capital.

At 31 December 2015 and 2014, the Parent has appropriated to this reserve the minimum amount required by law.



52. Reserves in fully-consolidated companies

Details by company of reserves in consolidated companies at 31 December 2015 and 2014 are as follows:

Thousands of Euros

2015 2014

Indra Sistemas - (9.038)

BPO Group (formerly BMB Group) (11.073) (15.321)

Indra Emac (10.41) (1.168)

Indra Sistemas de Seguridad 7.724 6.620

Indra SI (1.980) (3.769)

Indra Sistemas Chile (11.383) (7.976)

Indra Sistemas Portugal 4.180 3.702

Consulting Group 7.169 12.073

Inmize Capital (226) (214)

Inmize Sistemas 2.368 2.384

Indra Beijing 1.607 1.310

Indra Company (Brazil) (11.628) (80.004)

Indra Software Labs 25.263 21.489

Indra Mexico 17.832 15.983

Indra Sistemas Comunicaciones Seguras 2.872 3.348

Indra Magreb (36) (354)

Indra France - (1.405)

Indra Poland (919) (338)

Indra Australia 4.248 3.820

Azertia TI Mexico 7.238 7.051

Indra Colombia 3.297 3.419

Azertia GC Venezuela - (5.058)

Azertia TI Argentina (4.201) (12.175)

Indra USA (17.714) (16.469)

Prointec (26.777) (19.528)

Soluziona C&S Holding (Chile) - 193

Indra Czech Republic 1.336 928

Indra Slovakia 175 113

Soluziona Guatemala 260 262

Indra Hungary - 106

Indra Kenya 1.465 1.382

Soluziona Mexico (5.869) (6.425)

Soluziona Uruguay 11 (104)

Indra Sisteme SRL (166) (290)

Indra Panama 612 1.491

Indra Philippines 4.294 3.472

Electrica Soluziona (Romania) 1.217 941

Indra Ucrania - (263)

Soluziona SP CA (Venezuela) - 1.484

Computación Ceicom 4.886 4.786

Indra Company (Peru) 1.269 1.354

Indra Peru 2.707 1.977

AC-B 1.419 1.207

Indra Radar Technology (221) (1.535)

Indra India (5.949) (4.234)

Avitech Technology 1.040 153

Indra Malaysia (817) (344)

Indra Bahrain 1.817 3.634

Indra Indonesia (2.971) (1.936)

Indra Italy 6.215 5.922

Indra Brasil SA 52.314 51.636

Indra Navia 15.587 12.173

Indra Turkey (1.910) (1.565)

Indra Kazakhstan (241) (131)

Politec Argentina (287) (340)

Teknatrans (556) (435)

Indra Technology South Africa (918) (141)

IFOS (381) -

Indra Technology (Brazil) (1.031) -

Europraxis ALG Maroc (357) -

Indra Arabia 13.155 -

Total 84.925 (16.147)

3. Reserves in equity-accounted investees

Details by company of reserves in consolidated companies at 31 December 2015 and 2014 are as follows:

Thousands of Euros

2015 2014

Eurofi ghter Simulation System 3.627 3.105

Euromids 384 326

Trias Beltrán - 7

Saes Capital 932 1.160

A4 Essor SAS 211 138

Indra Sistemas de Tesorería - 30

IRB Riesgo Operacional 425 326

I3 TV (402) (20)

IESSA Brazil - (1.147)

Total 5.177 3.925



54. Voluntary reserves and merger reserves

These reserves are freely distributable except for a portion equivalent to the amount of the statement of fi nancial position revaluation permitted by Law 9/1983 of 13 July 1983, totalling Euros 9,464 thousand at 31 December 2015 and Euros 9,624 thousand at 31 December 2014, as well as the amount of research and development costs not yet amortised recognised in the Parent’s statement of fi nancial position, totalling Euros 122,684 thousand at 31 December 2015 (Euros 202,092 thousand at 31 December 2014) and any prior years’ losses.

5. Profi t/loss for the year attributable to the Parent

Details of the consolidated companies’ profi ts/losses for 2015 and 2014 are disclosed in Appendix I.

Non-controlling interests

Movement in non-controlling interests in fully consolidated companies during 2015 and 2014 is as follows:

Thousands of Euros

Balance at 31.12.14

Profi t/loss2015 to

NCI

Exchange differences Dividends Change in %

ownershipOther

variationsBalance at

31.12.15

Inmize Capital 526 (1) - - - - 525

Inmize Sistemas 3.865 2 - - - - 3.867

ALG Venezuela 32 (10) (22) - - - -

Elektrica Soluziona 1.047 161 (12) (270) - - 926

Indra Filipinas 6.400 1.462 417 - (17) (45) 8.217

Indra Radar Technology (Tian- (49) (18) (2) - - - (69)

Indra Kazakhstan 338 (674) 87 - - - (249)

Indra Malaysia 75 (92) 11 - - - (6)

Normeka 1.042 110 (54) - - - 1.098

Search (87) (1.288) (22) - 1.397 - -

Prointec Panama (28) - (3) - - - (31)

Indra Technology South Africa (486) (315) 130 - - - (671)

Total 12.675 (663) 530 (270) 1.380 (45) 13.607



5Thousands of Euros

Balance at 31.12.13

Profi t/loss2014 to

NCI

Exchange differences Dividends Change in %

ownershipProfi t/loss

in EquityOther

variationsBalance at

31.12.14

Inmize Capital 685 (159) - - - - - 526

Inmize Sistemas 3.950 32 - - - - (117) 3.865

Tourism & Leisure 58 - - - (79) 21 - -

ALG Peru 54 (13) 2 - (43) - - -

ALG Venezuela 193 4 (165) - - - - 32

ALG Maroc (137) - - - 137 - - -

Prointec (77) (7) - - (33) - 117 -

Elektrica Soluziona 780 268 (1) - - - - 1.047

Indra Philippines 5.089 1.137 675 (230) - (271) 6.400

Uatec (316) 7 - - - - 309 -

Indra Radar Technology (Tianjin) Co., Ltd.

(30) (16) (3) - - - - (49)

IFOS (49) (24) 8 - 65 - - -

Indra Kazakhstan 468 (104) (26) - - - - 338

Indra Malaysia 1 (176) 10 - - - 240 75

Normeka 1.051 81 (90) - - - - 1.042

Search (940) 875 (22) - - - - (87)

Prointec Panama (14) (10) (4) - - - - (28)

Indra Technology South Africa (86) (387) (13) - - - - (486)

Total 10.680 1.508 371 (230) 47 21 278 12.675



5A breakdown of non-controlling interests at 31 December 2015 and 2014 is as follows:

Thousands of Euros

31.12.15 31.12.14

Capital NCI Reserves NCI Profi t/(Loss) NCI Total Capital NCI Reserves NCI Profi t/(Loss) NCI Total

Inmize Capital 32 494 (1) 525 32 653 (159) 526

Inmize Sistemas 750 3.115 2 3.867 750 3.083 32 3.865

ALG Perú - - - - - 13 (13) -

ALG Venezuela - 10 (10) - - 28 4 32

Prointec - - - - - 7 (7) -

Elektrica Soluziona 15 750 161 926 15 764 268 1.047

Indra Philippines 264 6.491 1.462 8.217 264 4.999 1.137 6.400

Uatec - - - - 18 (25) 7 -

Indra Radar Technology 579 (630) (18) (69) 579 (612) (16) (49)

Indra Kazakhstan 600 (175) (674) (249) 600 (158) (104) 338

Indra Malaysia 282 (196) (92) (6) 282 (31) (176) 75

Normeka - 988 110 1.098 - 961 81 1.042

Search 1.201 87 (1.288) - 1.201 (2.163) 875 (87)

Prointec Panama - (31) - (31) - (18) (10) (28)

Indra Technology South Africa - (356) (315) (671) - (99) (387) (486)

Total 3.723 10.547 (663) 13.607 3.741 7.402 1.532 12.675



5Information on assets, liabilities and consolidated profi t/loss for 2015 and 2014 of the most signifi cant non-controlling interests, assigned to the Parent, is provided in Appendix IV.

The main transactions with non-controlling interests in 2015 are as follows:

• On 14 October 2015 the Parent company acquired an additional 0.1% interest in Indra Philippines, INC for Euros 63 thousand (PHP 3,306 thousand).

The main transactions with non-controlling interests in2014 were as follows:

• On 9 January 2014, the subsidiary, Indra Business Consulting S.L., acquired the remaining shares in its subsidiary Tourisme & Leisure Advisory Services, S.L. After this acquisition it owned 100% of the company and subsequently absorbed it.

• On 26 January 2014, the Parent acquired the remaining shares of its subsidiary Prointec S.A. for Euros 127 thousand. As a result of this acquisition, this company is now wholly-owned by the Group.

• On 5 June 2014 the subsidiary Advanced Logistics Group, S.A. acquired 10% of the shares of its subsidiary Europraxis-ALG Consulting Andina S.A.C for Euros 27 thousand. As a result of this acquisition, this company is now wholly-owned by the Group.

• On 6 October 2014 the Parent acquired the other 20% of the shares of its subsidiary International Financial Operational Services, S.A. (IFOS) for Euros 0.3 thousand. As a result of this acquisition, this company is now wholly-owned by the Group.

• On 27 October 2014 the subsidiary Indra Sistemas Magreb, S.R.L. acquired the other 34% of the shares in the Moroccan affi liate, Europraxis ALG Maroc, S.R.L., for Euros 78 thousand. As a result of this acquisition, this company is now wholly-owned by the Group.

19. LOSS/EARNINGS PER SHARE

The calculation of the weighted average number of ordinary shares outstanding and diluted shares at 31 December 2015 and 2014 is as follows:

Weighted average number of ordinary shares at 31.12.15

Ordinary shares

at 31.12.15


Ordinary shares

at 31.12.14

Total shares issued 164.132.539 164.132.539 16 164.132.539 164.132.539

Own shares (257.550) (347.011) (282.131) (202.199)

Total shares outstanding 163.874.989 163.785.528 163.850.408 163.930.340



Total shares issued 164.132.539 164.132.539

Own shares and fi nancial instruments linked to shares

17.237.202 17.212.621

Total diluted shares 181.369.741 181.345.160



5The calculation of basic earnings per share (rounded to four decimal places) for 2015 and 2014 is as follows:

2015 2014

Loss attributable to the Parent (in thousands of Euros)

(641.189) (91.908)

Weighted average number of ordinary shares outstanding

163.874.989 163.850.408

Basic earnings/(loss) per ordinary share (in Euros) (3,9127) (0,5609)

The calculation of diluted earnings per share (rounded to four decimal places) for 2015 and 2014 is as follows:

2015 2014

Loss attributable to the Parent (in thousands of Euros) (*)

(635.606) (86.555)

Weighted average number of ordinary shares outstanding

181.369.741 181.345.160

Diluted earnings/(loss) per ordinary share (in Euros) (3,5045) (0,4773)

(*) Profi t for the year not including the cost accrued on the convertible bond, net of the tax effect.

The calculation of earnings per ordinary share (rounded to four decimal places) for 2015 and 2014 is as follows:

2015 2014

Loss attributable to the Parent (in thousands of Euros)

(641.189) (91.908)

Shares issued 164.132.539 164.132.539

Earnings/(loss) per ordinary share (in Euros) (3,9065) (0,5600)

20. FINANCIAL LIABILITIES FROM ISSUING BONDS AND OTHER MARKETABLE SECURITIES AND NON-CURRENT LOANS AND BORROWINGS

Financial liabilities from issuing bonds and other marketable securities

This line item includes the fi nancial liability of Euros 237,543 thousand (Euros 229,686 thousand in 2014) for the issue by the Parent of convertible and/or redeemable bonds relating to shares listed on Freiverkehr, the open market of the Frankfurt Stock Exchange. The terms and conditions of the bonds are as follows:

• The bonds were issued for a nominal amount of Euros 250,000 thousand, to be redeemed after fi ve years (17 October 2018).

• The issue expenses totalled Euros 4,702 thousand.

• The bonds accrue annual fi xed interest at a nominal rate of 1.75%, payable every six months in arrears, specifi cally on 17 April and 17 October each year, with the fi rst interest payment on 17 April 2014. Euros 4,375 thousand were paid in this respect in 2015 (Euros 4,375 thousand in 2014).

• The effective interest rate of the bond was 3.70% (a nominal rate of 3.29%).

• The initial conversion price of the bonds was Euros 14.290 per share.

• The shares underlying the bonds initially represented around 10.7% of the Parent’s share capital prior to the issue.

• Bondholders may exercise their conversion rights from the last day of the offer, i.e. 17 October 2013, until 9 October 2018, the seventh trading day prior to the expiry date.

• Indra Sistemas can redeem in cash all (not a portion) of the bonds issued for an amount equivalent to the principal plus the accrued interest payable until redemption in two situations:

1. At any time from 7 November 2016 if the value of the bond over a certain period of time exceeds Euros 130,000 per bond.

2. At any time if 90% of the amount of the bond issue has been converted, redeemed or acquired by the Company.

• Bondholders may demand early redemption of the bonds in two situations:

1. In the event of a change of control at the Parent, for the principal of the bond issue plus the accrued interest receivable.

2. In the event of a public takeover bid of the issuer’s shares for the higher of: (i) the nominal value of the bond or (ii) the equivalent value of the bond that includes the appreciation in the issuer’s share price.

• The conversion rate may be reduced if the Company pays an annual dividend of more than Euros 0.34 per share and should any of the following situations, among others, arise:

1. The distribution of reserves or other amounts equivalent to dividends of more than Euros 0.34 per share.

2. A share split.3. A capital increase with pre-emptive subscription rights.4. The issue of new shares as payments in kind.



55. Spin-offs of assets or dividend payments in kind.6. In general any shareholder remuneration that could

have an impact on the equivalent value of the convertible bonds.

• The bond issue is guaranteed by the Parent’s equity, and not by any third parties.

• The fair value of the bond at the 2015 reporting date was Euros 228,853 thousand (Euros 223,918 thousand in 2014), based on the quoted price on the Frankfurt Stock Exchange.

• The interest expected to be generated is as follows:

Years Thousands of Euros

2016 8.742

2017 8.903

2018 7.207

24.852

Non-current loans and borrowings

Details by maturity of all other non-current loans and borrowings at 31 December 2015 are as follows:

Years Finance lease payables Credit institutions R&D loans Total

2017 2.605 61.656 17.637 81.898

2018 - 89.381 18.345 107.726

2019 - 137.242 17.784 155.026

Subsequent years - 318.932 60.790 379.722

Total al 31.12.15 2.605 607.211 114.556 724.372

Accrued interest payable in 2015 and 2014 totalled Euros 3,149 thousand and Euros 3,114 thousand, respectively.

The interest expected to be generated on loans and borrowings is as follows:


2016 14.894

2017 9.592

2018 6.651

2019 4.874

2020 3.310

2021 2.505

41.826

Details by maturity of all other non-current loans and borrowings at 31 December 2014 were as follows:



5Years Finance lease

payables Credit institutions R&D loans Total

2016 1.736 33.577 11.937 47.250

2017 1.577 128.271 17.568 147.416

2018 1.024 15.000 17.773 33.797

Siguientes - 291.512 76.069 367.581

Total al 31.12.14 4.337 468.360 123.347 596.044

In 2015 the most signifi cant loans arranged by the Group for an amount of Euros 158,000 thousand (Euros 345,000 thousand in 2014) consisted of non-current fi nancing in Euros, originally arranged with terms of between four and fi ve years, maturing between 2019 and 2020, with fl oating interest rates. No covenants are in place in respect of this fi nancing.

21. OTHER NON-CURRENT FINANCIAL LIABILITIES

Details of other non-current fi nancial liabilities are as follows:

Thousands of Euros

2015 2014

Guarantees and deposits received 597 111

Suppliers of fi xed assets 4.746 7.428

Other long-term debts 27.040 23.445

Total 32.383 30.984

Non-current loans and borrowings also include interest rate swaps used by the Parent to manage its exposure to interest rate fl uctuations, mainly on non-current bank loans arranged at fl oating rates. The fair value of these swaps, Euros 668 thousand (Euros 1,761 thousand in 2014) has been determined based on the market values of equivalent fi nancial derivatives at the reporting date (see note 37 a).

At 31 December 2015 suppliers of non-current assets include the estimated balances payable due to the acquisition of G-Nubila Technology and the other 22.5 % interest in Indra Italia, Spa. These amounts are due in May 2016 and therefore the Parent has transferred the entire amount payable, totalling Euros 2,685 thousand, to current liabilities (note 26). The amounts due to the remeasurement of these two items recognised under fi nance costs in the consolidated income statement in 2015 total Euros 213 thousand (Euros 225 thousand in 2014).

The estimated liabilities arising from the acquisition of 22.5% of Indra Italia Spa by exercising the call option at the reporting dates from the date of the agreement is as follows:

• 2011: Euros 6,987 thousand• 2012: Euros 7,176 thousand• 2013: Euros 7,369 thousand• 2014: Euros 2,615 thousand• 2015: Euros 2,685 thousand

In 2011, 2012 and 2013 a calculation criterion was applied that fi xed the price according to expected EBIT at 2015 year end, multiplied by a multiple based on a rising scale subject to fulfi lment.

However, the signing of an agreement to acquire the 22.5% non-controlling interest in Indra Italia, Spa for Euros 3.3 million, plus a variable amount of 0.325 million subject to the renewal of a major contract, was brought forward (planned for 2016) to February 2014. The price will be paid in May 2016. The criterion for calculating this price is based on a bilateral negotiation.

The agreement was signed early because it was advisable to assign additional resources and capacity to the activity in Italy to carry out more solutions work, especially in the Defence and Security and Transport and Traffi c markets.

As a result of the earlier agreement, in 2014 the Parent recognised income of Euros 4,844 thousand under fi nance income in the consolidated income statement.

The amount presented at 2015 year end is the net present value of the price expected to be paid, i.e. Euros 2,715 thousand, in 2016.

Also the amount payable in respect of the acquisition of the subsidiary G-Nubila Technology was Euros 3,029 thousand (Euros 2,886 thousand in 2014).

Other non-current payables mainly include an amount of Euros 10,593 thousand for the differences between the insured value and the realisable value at the date of preparing these consolidated annual accounts of items hedged with a hedging contract arranged by the Parent.



522. GOVERNMENT GRANTS

Details of government grants and movement in 2015 and 2014 are as follows::

Balanceat

31.12.14

Addi-tions

Trans-fers

Taken to

profi t and loss

Balanceat

31.12.15

Grants 12.958 7.505 14.387 (28.856) 5.994

Balanceat

31.12.13

Addi-tions

Trans-fers

Taken to

profi t and loss

Balanceat

31.12.14

Grants 15.969 13.124 3.590 (19.725) 12.958

Grants have been awarded by various public entities for development projects (see note 9) and training programmes.

23. PROVISIONS FOR LIABILITIES AND CHARGES S

Details of provisions for liabilities and charges and movement during 2015 and 2014 are as follows:

Thousands of Euros

Balance at 31.12.14

Variations consolida-ted Group

Translation differences.

Provisions Reversals Payments Transfers Balance at 31.12.15

Provisions for taxes 4.551 (410) (84) 434 (994) - 6.054 9.551

Other provisions 35.843 - (8.595) 58.088 (2.459) (5.356) 16.299 93.820

Total 40.394 (410) (8.679) 58.522 (3.453) (5.356) 22.353 103.371

Thousands of Euros

Balance at 31.12.13

Translation differences.

Provisions Reversals Payments Transfers Balance at 31.12.14

Provisions for taxes 9.667 (341) 66 - - (4.841) 4.551

Other provisions 89.671 5.941 12.012 (48.723) (22.282) (776) 35.843

Total 99.338 5.600 12.078 (48.723) (22.282) (5.617) 40.394



5Details of provisions, as well as the corresponding temporary di� erences and expected application dates, are as follows:

Thousands of Euros

Provisions for taxes Balance at 31.12.14 Balance at 31.12.15

Concept Balance Temporary difference

Variation in consolidated

Group

Translation differences

Provisions Reversals Transfers Balance t Temporary difference

Expected date of reversal/use

Appeals fi led 4.551 34 (410) (84) 434 (994) 6.054 9.551 150 2016-2018

Total provision for taxes” 4.551 34 (410) (84) 434 (994) 6.054 9.551 150

Thousands of Euros

Provision for taxes Balance at 31.12.13 Saldo al 31.12.14



Provisions Transfers Balance Temporary difference Expected date of reversal/use

Appeals fi led 9.667 33 (341) 66 (4.841) 4.551 34 2015-2017

Total provision for taxes” 9.667 33 (341) 66 (4.841) 4.551 34



5Thousands of Euros

Other provisions Balance at 31.12.14 Balance at 31.12.15



Provisions Reversals Payments Transfers Balance Temporary difference

Expected date reversal/use

Trade claims 909 909 - 650 (647) - - 912 912 2016

HR claims 26.725 - (8.508) 52.722 (107) (5.027) (9.536) 56.269 40.860 2016-2018

Salaries 972 22.742 3 1.893 (288) (329) 2.779 5.030 22.742 2018

Contingencies 7.237 1.185 (90) 2.823 (1.417) - (121) 8.432 1.185 2016-2019

Project guarantees - - - - - - 23.177 23.177 23.177 2016-2019

Total other provisions 35.843 24.836 (8.595) 58.088 (2.459) (5.356) 16.299 93.820 88.876

Thousands of Euros

Other provisions Balance at 31.12.13 Balance at 31.12.14



Provisions Reversals Payments Transfers Balance Temporary difference

Expected date reversal/use

Trade claims 362 362 - 703 (156) - - 909 909 2016

HR claims 45.069 3.537 3.394 7.596 (25.461) (1.172) (2.701) 26.725 - 2016-2018

Salaries 23.510 22.742 (20) 439 (129) (21.110) (1.718) 972 22.742 2018

Contingencies 20.730 4.907 2.567 3.274 (22.977) - 3.643 7.237 1.185 2016-2019

Total other provisions 89.671 31.548 5.941 12.012 (48.723) (22.282) (776) 35.843 24.836



5The largest amount corresponding to appeals made is the contested assessment A0271821943 of the Parent dated 9 December 2010. This assessment contains a proposed income tax settlement for 2004 to 2007 which involves paying Euros 4,493 thousand (principal of Euros 3,806 thousand and interest of Euros 687 thousand). In January 2011 the Parent submitted allegations against this assessment, requesting it be annulled.

The amounts relating to trade appeals pending resolution by courts and city councils have been discounted using the discount rate applicable to late payment interest for each year.

The provision for HR claims is basically to cover various claims from former suppliers of the Brazilian subsidiaries- the nature of which was similar to self-employed personnel - who after completing the service agreements for which they were contracted made claims against the company (or there is a risk that they will), questioning the status of self-employed supplier and claiming compensation as if they had had an employment relationship.

The provision for employee benefi ts is mainly for the medium term variable remuneration and incentives of directors and senior management.

In 2015 this balance also includes the amount provisioned by the Parent as a result of the workforce restructuring plan started, which was announced to employees in August 2015 and is expected to be completed in December 2018. At 31 December 2015 Euros 40,860 thousand of the provision recognised is pending application.

Various amounts for legal proceedings are included under contingent liabilities in 2015. These proceedings are not expected to be resolved until 2016. At 2015 year end the main contingent liabilities included in this provision are as follows:

• Tax contingencies totalling Euros 6.6 million (Euros 4.2 million in 2013): A provision derived from legal proceedings questioning a CIDE (Contribuição de

Intervenção no Domínio Econômico) tax incident in respect of the subsidiary, Indra Brasil, S.A.

• Contingent liabilities arising from possible risks in the subsidiary Indra Chile, for which the Parent has made a provision of Euros 1.7 million.

At 31 December 2015 and 2014 the Parent has legal proceedings underway totalling Euros 26,412 thousand, which it considers will probably occur. The most signifi cant are the judicial review proceedings fi led by the General State Comptroller’s Offi ce of Ecuador in the suit against Indra Sistemas, S.A.

This is a lawsuit derived from the Euros 23,760 thousand contract for the implementation of a judicial information system for the Judiciary Council of Ecuador that was awarded to Indra Sistemas, S.A.

Although the contract was correctly performed and accepted, in August 2013, the General State Comptroller’s Offi ce determined, in an administrative decision, that Indra Sistemas, S.A. had incurred fault-based civil liability jointly with the contract managers at the Judiciary Council, for failure to comply with the purpose of the contract.

Both parties have fi led appeals for a judicial review of the decision determining the fault-based civil liability. Leave has been granted to proceed with the appeal for judicial review fi led by Indra Sistemas, S.A. and proceedings are currently at the evidentiary stage.

24. FINANCIAL LIABILITIES FROM ISSUING BONDS AND OTHER MARKETABLE SECURITIES AND CURRENT LOANS AND BORROWINGS

Details of this consolidated income statement item at 31 December 2015 and 2014 are as follows:

Thousands of Euros

2015 2014

Bonds and debentures (note 20) 729 38.891

Loans 61.580 78.405

Interest payable 3.150 2.678

Finance leases (note 6) 1.889 2.079

Total 67.348 122.053

Offi cial loans for research programmes 12.029 8.809

Total 79.377 130.862

Bonds and debentures comprise the Euros 729 thousand (Euros 4,375 thousand in 2014) for bonds issued with current maturities by the Parent (these bonds accrue interest at a fi xed nominal annual rate of 1.75%, payable every six months in arrears, on 17 April and 17 October each year). The decrease in the balance is because the debentures issued in Brazil were not renewed as this funding has been replaced by bank fi nancing for a two year term. In 2014 the balance included Euros 34,516 thousand in this respect.

Loans comprise the current credit facilities drawn down as well as the current portion of non-current bank loans. The Euros 16,825 thousand variation between the 2015 and 2014 fi gures is mainly because a lower amount has been



5drawn on credit facilities for working capitalThe entire Euros 12,029 thousand (Euros 8,809 thousand in 2014) of offi cial loans for research programmes consist of the current portion of loans received from public entities to carry out research programmes (see note 22).

The information on amounts drawn down and available on credit facilities is as follows:

Thousands of Euros

2015 2014

Amount available 332.141 363.099

Amount drawn down 61.580 78.405

Total credit facilities 393.721 441.504

25. TRADE AND OTHER PAYABLES

Details of trade and other payables at 31 December 2015 and 2014 are as follows:

Thousands of Euros

2015 2014

Purchases and services received 559.826 581.310

Advances from customers 613.355 594.033

Total 1.173.181 1.175.343

Final provision two of Law 31/2014 amends the Spanish Companies Act to improve corporate governance and additional provision three of Law 15/2010, on measures to combat late payment in commercial transactions, requiring all commercial companies to expressly disclose average payment terms to suppliers in the notes to the annual accounts. Also the Spanish Accounting and Auditing Institute (ICAC) is empowered to set the standards and

calculation methods.This resolution will be mandatory for all Spanish companies that prepare consolidated fi nancial statements, although exclusively for companies based in Spain that are fully or proportionally consolidated.

As a result, the Spanish Accounting and Auditing Institute (ICAC) issued its resolution of 29 January 2016 establishing the methodology for calculating the average supplier payment period for 2015. The resolution indicates that comparative information for this new obligation does not have to be presented as the annual accounts are classifi ed as the fi rst annual accounts solely in this respect, with regards to the application of the principle of consistency and the requirement of comparability.

The average supplier payment period is calculated by applying the following formula:

Periodo medio de pagos a proveedores

=

Ratio de operaciones pagadas x importe de pagos realizados + Ratio de operaciones pendientes de pago x importe total pagos pendientes

Importe total de pagos realizados + Importe total de pagos pendientes

The data of the Spanish companies for 2015 are as follows:

2015 Days

Average supplier payment period 46

Transactions paid ratio 47

Transactions payable ratio 41

Amount (Thousands of

Euros

Total payments made 700.861

Total payments outstanding 140.174

26. OTHER LIABILITIES

Details of other liabilities at 31 December 2015 and 2014 are as follows::

Thousands of Euros

2015 2014

Public entities (note 36) 124.363 124.016

Salaries payable 68.390 71.372

Cash fl ow hedges 30.936 18.493

Guarantees and deposits received 65 212

Trade provisions 148.405 40.083

Accruals 2.734 2.554

Suppliers of fi xed assets 3.937 1.512

Other payables 5.292 34.021

Total 384.122 292.263



5Trade provisions include Euros 51,300 thousand for the workforce restructuring plan started by the Parent. Suppliers of fi xed assets include Euros 2,685 thousand as a result of the acquisition of the remaining 22.5% interest in Indra Italia, Spa (note 21).

27. SEGMENT REPORTING

The following tables present information on the Group’s business segments, based on the individual fi nancial statements of the different Group companies. General management review this information and take any related decisions.

The Group’s segments are Services and Solutions



52015 (Thousands of Euros)

Segment reporting at 31 December 2015: Solutions % Services % Unallocated-corporate

Eliminations Total %

External sales 1.833.953 99,9% 1.016.451 98% - - 2.850.404 100%

Inter-segment sales 2.168 0,1% 16.257 2% - (18.425) - -

Net sales 1.836.121 100% 1.032.708 100% - (18.425) 2.850.404 100%

Contribution margin 188.102 10,2% 75.774 7,3% - (1.015) 262.861 9%

Impairment and provisions (304.900) - (185.644) - (196.090) - (686.634) -24%

Other income and expenses (corporate and unallocated) - - - - (218.704) 1.015 (217.689) -8%

Results from operating activities (116.798) - (109.870) - (414.794) - (641.462) -23%

Other gains/(losses) (20.625) - (34.456) - (8.983) - (64.064) -2%

Share in profi t/(loss) of associates (185) - (169) - (23) - (377) 0,0%

Income tax 15.457 - (54.639) - 103.233 - 64.051 2,2%

Segment profi t/(loss) (122.151) -7% (199.134) -19% (320.567) - (641.852) -23%

Other information

Investments 31.757 - 4.267 - 12.969 - 48.993 -

Depreciation and amortisation 37.707 - 13.607 - 34.166 - 85.480 -

Balance sheet

Assets

Segment assets 1.523.444 - 576.132 - 955.780 - 3.055.356 -

Assets in associates 8.013 - 930 - - - 8.943 -

Total consolidated assets - - - - - 3.064.299 -

Liabilities

Segment liabilities 1.482.102 - 759.935 - 528.222 - 2.770.259 -

Total consolidated liabilities - - - - - - 2.770.259 -




Geographical segment reportingat 31 December 2015:

Spain Latin America Europe and North America

Asia, Middle East and Africa

Total

External sales 1.222.834 733.823 558.492 335.255 2.850.404

Investments 40.492 4.744 1.385 2.371 48.992

Assets employed 2.042.799 492.491 261.097 267.912 3.064.299




Segment reporting at 31 December 2014: Solutions % Services % Unallocated-corporate

Eliminations Total %

External sales 1.886.972 99,9% 1.050.913 98% - - 2.937.885 100%

Inter-segment sales 2.168 0,1% 16.257 2% - (18.425) - -

Net sales 1.889.140 100% 1.067.170 100% - (18.425) 2.937.885 100%

Contribution margin 289.219 15,3% 132.213 12,4% - (910) 420.522 14%

Impairment and provisions (224.474) - (4.566) - (16.940) - (245.980) -8%

Other income and expenses (corporate and unallocated) - - - - (217.926) 910 (217.016) -7%

Results from operating activities 64.745 - 127.647 - (234.866) - (42.474) -1%

Other gains/(losses) (33.763) - (23.206) - 5.772 - (51.197) -2%

Share in profi t/(loss) of associates 398 - (3.743) - - - (3.345) -0,1%

Income tax (84.095) - (27.317) - 118.028 - 6.616 0,2%

Segment profi t/(loss) (52.715) -3% 73.381 7% (111.066) - (90.400) -3%

Other information

Investments 52.497 - 8.963 - 11.103 - 72.563 -

Depreciation and amortisation 28.705 - 11.381 - 24.146 - 64.232 -

Balance sheet

Assets

Segment assets 1.646.373 - 718.082 - 1.111.150 - 3.475.605 -

Assets in associates 8.860 - (3.196) - - - 5.664 -

Total consolidated assets - - - - - - 3.481.269 -

Liabilities

Segment liabilities 1.241.753 - 584.742 - 713.874 - 2.540.369 -

Total consolidated liabilities - - - - - - 2.540.369 -




Geographical segment reporting at 31 December 2014:

Spain Latin America Europe and North America

Asia, Middle East and Africa

Total

External sales 1.146.541 803.963 612.497 374.884 2.937.885

Investments 60.024 8.315 2.684 1.540 72.563

Assets employed 2.230.685 754.877 264.709 230.998 3.481.269

Impairment and non-distributable corporate provisions mainly consist of the termination benefi ts due to the workforce restructuring plan started by the Parent in 2015 and those corresponding to 2014 (note 30).

Other income and expenses mainly comprise fi xed costs for corporate functions and overheads of the subsidiaries and other activities that, due to their nature, cannot be assigned to segments, as no separate fi nancial information is available.

28. OTHER INCOME

In 2015 this item mainly includes income from grants amounting to Euros 42,120 thousand (Euros 23,649 thousand in 2014).).

29. MATERIALS AND OTHER SUPPLIES USED

The total cost of materials and other supplies used by the Group during the years ended 31 December 2015 and 2014 is as follows::

Thousands of Euros

2015 2014

Subcontracted work and materials consumed

843.308 755.992

Change in inventories (2.693) 1.227

Total 840.615 757.219

30. PERSONNEL EXPENSESL

Details of personnel expenses during the years ended 31 December 2015 and 2014 are as follows:

Thousands of Euros

2015 2014

Salaries and wages 1.104.252 1.057.764

Termination benefi ts 156.232 27.045

Social Security and other employee benefi ts expenses

371.807 314.701

Total 1.632.291 1.399.510

• In August the Parent’s management informed its employees of the workforce restructuring plan, which will be completed in December 2016 (payment in 2018). The most signifi cant conditions of this plan are as follows:

• Employees affected: 1,750 (350 may possibly be relocated to other Group subsidiaries).

• Termination benefi t: 40 days per year worked, up to a maximum amount of 24 monthly salaries.

• A long-service bonus of Euros 10,000 for employees with more than 20 years of service to the company and Euros 5,000 for employees with 15-20 years of service.

• Early retirements:

» Employees who are 63 years old or older: the legally established benefi ts;

» Employees between 59 and 62 years of age: may leave voluntarily and receive 90% of their net salary if their gross salary is below Euros 40,000 or 80% of their net salary if their gross salary is more than Euros 40,000 until they are 63 years old;



5maximum amount of 24 monthly salaries.

• A bonus for accepting voluntary redundancy of Euros 2,000.

• A bonus of Euros 750 to Euros 1,500 depending on length of service

As a result of this plan the subsidiary has recognised provisions for termination benefi ts of Euros 2,757 thousand in the consolidated income statement, which is the cost of the workforce restructuring plan.

The average number of Group employees and directors of the Parent in 2015 and 2014, distributed by category, is as follows:

» Employees between 57 and 58 years of age: may leave voluntarily and receive 85% of their net salary if their gross salary is below Euros 40,000 or 80% of their net salary if their gross salary is more than Euros 40,000 until they are 62 years old. Additionally they will receive a bonus of Euros 5,000.

» In these last two cases the base for social security contributions will be increased each year by 1%.

• Employees that are 55 and 56 years old: the company will pay the special agreement with Social Security until the fi rst retirement age (from 61 onwards).

• Exclusion criteria for those affected:

» Disabled employees or those with disabled dependents; » No more than one member of all these family units can be made redundant;

» Employees with children suffering a serious illness as legally defi ned;

» Employees suffering gender-based violence

As a result of this plan the Parent has recognised provisions totalling Euros 40,860 thousand and Euros 51,300 thousand, respectively, (notes 23 and 26) for the workforce restructuring plan still to be enforced and has paid Euros 63,158 thousand.

Euros 109,318 thousand for termination benefi ts and Euros 46,000 thousand for Social Security charges were recognised in the consolidated income statement in respect of this plan.

In December 2015 the management of the subsidiary Central de Apoyos y Medios Auxiliares, S.A. informed its employees of a workforce restructuring plan that will end in February 2016. The most signifi cant conditions of this plan are as follows:

• Employees affected: 132.

• Termination benefi t: 35 days per year worked, up to a



5Number of employees

2015 2014

Male Female Total Male Female Total

Board members 11 2 13 11 3 14

Senior management 12 3 15 8 1 9

Management 429 69 498 412 72 484

Graduates and other qualifi ed staff

21.590 9.816 31.406 21.317 9.724 31.041

Administrative staff 1.382 2.310 3.692 1.301 2.190 3.491

Factory employees 1.341 1.668 3.009 1.818 1.669 3.487

Other 30 8 38 22 13 35

Total 24.795 13.876 38.671 24.889 13.672 38.561

During 2015 and 2014 the average number of employees of the Group’s Spanish companies with a percentage of disability equal to or higher than 33%, distributed by category, is as follows:

Number of employees

2015 2014


Management 2 1 3 2 - 2


117 39 156 98 34 132

Administrative staff 25 31 56 25 32 57

Factory employees 4 - 4 2 - 2

Other 1 - 1 1 - 1

Total 149 71 220 128 66 194



531. OTHER OPERATING EXPENSES

Details at 31 December 2015 and 2014 are as follows:

Thousands of Euros

2015 2014

Leases and royalties 135.460 139.094

Repairs and maintenance 24.358 23.950

Professional services 151.443 131.128

Carriage and shipping costs 8.485 8.363

Insurance 6.804 7.584

Bank services 9.309 8.966

Donations, trade fairs, advertising and representation

16.845 14.815

Utilities 11.840 15.467

Travel costs 173.105 175.193

Taxes 40.111 47.981

Other operating expenses 221.269 47.697

Total 799.029 620.238

The increase in other operating expenses is mainly due to the provision of Euros 134,142 thousand made for receivables and the Euros 87,127 thousand provision for onerous projects.

The provisions totalling Euros 57,590 thousand recognised in Brazil for onerous contracts are mainly due to a small number of problematic projects, in a context of a notable worsening of the macro economic conditions in the country, longer payment periods from public entities, budget restrictions for public clients and tightening of the exacting local conditions for accepting project milestones. .

At the 2015 and 2014 reporting dates the distribution by gender and category is as follows:

Number of employees

2015 2014


Board members 11 2 13 10 3 13

Senior management 11 2 13 8 1 9

Management 396 62 458 406 70 476


20.163 9.188 29.351 21.671 9.798 31.469

Administrative staff 1.383 2.292 3.675 1.403 2.335 3.738

Factory employees 1.330 2.199 3.529 1.568 1.829 3.397

Other 26 8 34 24 12 36

Total 23.320 13.753 37.073 25.090 14.048 39.138



532. IMPAIRMENT AND GAINS/LOSSES ON DISPOSAL OF FIXED ASSETS


Thousands of Euros

2015 2014

Disposals/impairment of goodwill (note 8) (104.732) (22.145)

Impairment and gains/(losses) on disposal of intangible assets (note 9)

(7.495) (19.928)

Impairment and gains/(losses) on disposal of property, plant and equipment (note 6)

(5.473) (1.272)

Impairment and gains/(losses) on disposal of investment property (note 7)

- (485)

Impairment of other non-current fi nancial assets (note 12 c)

(3.090) -

Total (120.790) (43.830)

In 2015, impairment and gains/losses on disposal of fi xed assets comprises impairment of Euros 7,396 thousand on intangible assets recognised in 2011 as a result of the acquisition of Politec Tecnología da Informacao, S.A.

In 2014 the Parent recognised an impairment loss of Euros 18,865 thousand on investments made in the energy market commercial management system under impairment and gains/losses on disposal of fi xed assets (see note 9).

Impairment of Euros 4,313 thousand is included under impairment and gains/losses on disposal of property, plant and equipment in respect of a building transferred to property, plant and equipment as a result of the agreement to buy Politec Tecnología da Informacao, S.A. (notes 6 and 12c).

This amount also includes disposals of Euros 1,160 thousand (Euros 1,272 thousand in 2014) due to the

renewal of equipment, mainly carried out by the subsidiary, Indra Brasil, S.A.

In 2014 impairment and gains/losses on investment property included a loss of Euros 485 thousand incurred on the sale of investment properties by the subsidiary Prointec, S.A. (Note 7)

33. SHARE IN PROFIT/LOSS OF OTHER INVESTEES


Thousands of Euros

2015 2014

Gains on fi nancial assets 4.576 64

Losses and impairment of fi nancial assets (note 12 c)

(10.053) (1.812)

Total (5.477) (1.748)

Losses and impairment of fi nancial assets comprise Euros 3,502 thousand due to the derecognition of the estimated value of a nine-year marketing agreement related to the sale of Gibb Portugal Consultores de Engenharia, Gestado e Ambiente, S.A (note 12c).

A loss of Euros 2,676 thousand was also recognised as a result of the sale of the subsidiary Soluziona SP CA (note 1).).

34. FOREIGN CURRENCY TRANSACTIONS

The main transactions in non-Euro currencies in 2015 and 2014 are as follows:

Thousands of Euros

2015 2014

Sales 1.202.186 1.318.976

Purchases 547.223 534.846

35. DEPOSITS AND GUARANTEES

At 31 December 2015 several different banks and insurance companies had deposited guarantees totalling Euros 1,008,742 thousand with third parties on behalf of the Group, mainly to secure the completion of contracts. At 31 December 2014 these guarantees totalled Euros 999,676 thousand.

The Group does not expect any signifi cant liabilities to arise from these guarantees.

In 2015 and 2014 guarantees amounting to Euros 6,413 thousand were received from third parties to ensure fulfi lment of project-related obligations. They consist of bank guarantees with different maturities, which Indra can execute if the third party fails to meet the obligations guaranteed.



536. TAXATION

The Parent fi les consolidated income tax returns as the parent of tax group 26/01, which comprises the Parent and the subsidiaries Indra Sistemas de Seguridad, S.A.U., Inmize Capital, S.L., Indra Business Consulting, S.L.U., Indra Software Labs, S.L.U., Indra BPO, S.L.U., Indra Emac, S.A.U., Indra Sistemas de Comunicaciones Seguras, S.L.U, Advanced Logistics Group, S.L.U., Indra BPO Servicios, S.L.U., Prointec, S.A., Central de Apoyos y Medios Auxiliares S.A.U. and Indra Advanced Technology, S.L.

At 31 December 2015 and 2014, in accordance with IAS 12, the Group has presented its net deferred tax assets and liabilities by jurisdiction, amounting to Euros 59,010 thousand and 89,155 thousand, respectively.

Deferred tax assets

Details of movement in deferred tax assets are as follows::

Años Thousands of Euros

2017 1.960

2018 408

2019 -

2020 -

Subsequent years 316.345

Total 318.713

The Spanish Group companies have deferred tax assets with an estimated reversal period of more than one year amounting to Euros 131,044 thousand (Euros 100,615 thousand at 31 December 2014).

Approximately 75% of the deferred tax assets recognised are expected to be recovered within three years.

Thousands of Euros

Balance at 31.12.14

Change in tax rates


Generated Reversals Other movements

Balance at 31.12.15

Deferred tax assets 205.195 (20.067) (8.930) 151.049 (72.719) 4.499 259.027

Thousands of Euros

Balance at 31.12.13

Change in tax rates



Balance at 31.12.14

Deferred tax assets 175.045 (16.600) 333 95.642 (44.885) (4.340) 205.195

The recovery of deferred tax assets depends on the generation of suffi cient taxable income in the future. The Parent’s directors consider that the projected future profi ts of the various Group companies amply cover the amounts necessary to recover these assets, above all because the Parent’s losses in 2015 and 2014 are due to non-recurring impacts, including the workforce restructuring plan that will result in higher margins in future years.

Details of deferred tax assets at 31 December 2015 and 2014 are as follows:

Thousands of Euros

Concept 2015 2014

Charges to and application of provisions 47.558 52.246

Amortisation of goodwill 2.131 1.974

Excess amortisation/depreciation 4.823 5.708

Tax loss carryforwards and tax deductions 136.962 112.044

Other 67.553 33.223

Deferred tax assets 259.027 205.195

The period for reversal of the tax losses and deductions recognised in 2015 is as follows:



5Current tax assets

Details of income tax assets at 31 December 2015 and 2014 are as follows:

Thousands of Euros

2015 2014

Prior years’ income tax recoverable 3.353 -

Current year’s income tax recoverable 24.988 50.057

Total 28.341 50.057

Deferred tax liabilitiess

The Parent has not recognised deferred tax liabilities relating to undistributed profi ts of subsidiaries over which its control enables it to manage when the temporary differences are reversed, and these are not expected to reverse in the near future.

Details of movement in deferred tax liabilities during 2015 and 2014 are as follows:

Thousands of Euros

Balance at 31.12.14

Change in tax rates



Balance at 31.12.15

Deferred tax liabilities 90.976 97 (3.510) 2.352 (30.488) 2.913 62.340

Thousands of Euros

Balance at 31.12.13

Change in tax rates



Balance at 31.12.14

Deferred tax liabilities 104.094 (18.675) 352 13.770 (1.333) (7.232) 90.976

Details of deferred tax liabilities at 31 December 2015 and 2014 are as follows::

Thousands of Euros

Concept 2015 2014

Finance leases 567 598

Taxable capital gains 2.382 2.427

Portfolio provisions 30.745 33.665

Amortisation of goodwill R&D loan adjustments

24.445 23.344

Other 4.201 30.942

Deferred tax liabilities 62.340 90.976

v

It is not expected that a material amount of deferred tax liabilities will be reversed in less than one year.

Current tax liabilities

Details of income tax liabilities at 31 December 2015 and 2014 are as follows:

Thousands of Euros

2015 2014

Prior years’ income tax 406 2.617

Current years’ income tax 3.866 7.597

Income tax (companies located abroad) 7.406 7.126

TOTAL 11.678 17.340

Income tax expense

Due to the treatment permitted by fi scal legislation of certain transactions, accounting profi t differs from taxable income. A reconciliation of accounting profi t/loss for the year with the taxable income of the companies forming the Group, including the income tax expense calculation at 31 December 2015 and 2014, is as follows:.




Concept 2015 2014

A. -Accounting profi t before tax (705.903) (97.016)

Adjustments to accounting profi t:

Other positive differences 285.521 67.160

Other negative differences (61.851) (47.922)

Total adjustments to accounting profi t 223.670 19.238

B. -Adjusted accounting profi t (482.233) (77.778)

Temporary differences:

Positive, generated during the year 262.067 85.264

Positive, generated in prior years 80.230 8.142

Negative, generated during the year (10.277) (46.649)

Negative, generated in prior years (80.081) (49.095)

Total temporary differences 251.939 (2.338)

C.-Taxable income (230.294) (80.116)

D.- Tax loss carryforwards for offset - (5.523)

E.- Adjusted taxable income (230.294) (85.639)

Income tax payable (51.128) (25.533)

Deductions:

International double taxation relief (3.513) (7.204)

Investments in R&D&i and others (9.911) (17.595)

F.- Credit for loss carryforwards 76.136 60.462

G.- Local taxes abroad 1.032 582

H.- Total tax payable 12.616 10.712

Withholdings and payments on account 29.519 38.617

Total recoverable (16.903) (27.905)

I.- Deferred tax assets (current year) (73.696) (25.688)

J.- Deferred tax assets recovered (22.048) 15.523

K.- Deferred tax liabilities (current year) 24.513 13.770

L.- Deferred tax liabilities recovered (1.174) (1.333)

Accrued income tax (H+I+J+K+L) (59.789) 12.984

Income tax (companies located abroad) 9.778 13.792

Prior years’ income tax (145) 9.275

Income tax, differences in tax rates 12.494 (2.075)

Deductions capitalised (26.389) (40.592)

M.- Income tax for the year (64.051) (6.616)

Loss for the year after tax (A-M) (641.852) (90.400)



5A reconciliation of the legal tax rate and the effective tax rate applied by the Group is as follows:

2015

Thousands of Euros

%

Consolidated loss (before tax) (705.903)

Income tax at the rate applicable in Spain (197.653) 28,00%

Effect of permanent differences 62.628 (8,87%)

Effect of deductions (3.759) 0,53%

Effect of other income tax adjustments from prior years

(145) 0,02%

Effect of tax loss carryforwards 76.136 (10,79)%

Effect of deductions capitalised (26.389) 3,74%

Income tax on companies located abroad 10.810 (1,53)%

Effect of different tax rates 14.321 (2,03)%

Total (64.051) 9,07%

As in 2014, the Group has no reinvestment commitments at 31 December 2015.

Under prevailing Spanish tax legislation, the application period for deductions in respect of investments is 18 years and for other deductions is 15 years. The reversal periods for available deductions for investments, training and export activity in 2015 are as follows:


2026 -

Subsequent years 4.124

Total 4.124

Details of loss carryforwards available for offset at 31 December 2015 and 2014 that have not been recognised because the Group does not foresee their recovery in a period under 10 years are as follows:

(Thousands of Euros)

Tax loss carryforwards for offset

Years 2015 Years 2014

2011 and prior years

100.8552010 and

prior years32.040

2012 28.565 2011 16.926

2013 31.090 2012 31.801

2014 59.507 2013 21.339

2015 174.717 2014 18.244

Total 2015 394.734 Total 2014 120.350

2014

Thousands of Euros

%

Consolidated loss (before tax) (97.016)

Income tax at the rate applicable in Spain (29.105) 30,00%

Effect of permanent differences 5.771 (5,95)%

Effect of deductions (24.799) 25,56%

Effect of other income tax adjustments from prior years

9.275 (9,56)%

Effect of tax loss carryforwards 60.462 (62,32)%

Effect of deductions capitalised (40.592) 41,84%

Income tax on companies located abroad 13.792 (14,22)%

Effect of different tax rates (1.421) 1,46%

Total (6.616) 6,82%

Details of available deductions for investment, training and export activities at 31 December 2015 and 2014 are as follows:


Deductions for investments and other reasons

Years 2015 Years 2014

2011 and prior years

3.6612010 and

prior years4.006

2012 311 2011 455

2013 101 2012 311

2014 44 2013 155

2015 7 2014 44

Total 2015 4.124 Total 2014 4.971



5The period for reversal of available tax losses for offset in 2015, which have not been recognised, is as follows:


2016 3.282

2017 1.417

2018 3.369

2019 4.202

2020 3.010

2021 722

2022 1.367

2023 2.891

2024 1.912

Unlimited 372.562

Spanish tax legislation caps the amount of tax loss carryforwards available for offset by the companies forming part of the tax group headed by Indra Sistemas, S.A. in 2012, 2013, 2014 and 2015 at 25% of taxable income prior to offset. For the rest of the Spanish companies, this percentage varies depending on the volume of transactions and revenues. For these same periods goodwill may only be amortised up to one hundredth of its amount per year and the amortisation of intangible assets with indefi nite useful lives is capped at one fi ftieth of the amount. Furthermore, for 2013 and 2014 the depreciation/amortisation of property, plant and equipment, intangible assets and investment property was limited to 70% of the assets’ depreciation/amortisation for accounting purposes.

As a result of the approval of the Corporate Income Tax Law 27/2014, of 27 November 2014, which came into effect on 1 January 2015 and will generally be applicable to the tax periods starting on or after that date of the Spanish Group companies, the tax rate will gradually decline. The general tax rate is 28% in 2015 and is reduced to 25% in 2016.

to be signifi cant to the consolidated annual accounts.

Balances with public entitiess

The balances receivable from public entities are as follows:

Thousands of Euros

2015 2014

Taxation authorities (receivable):

Value added tax 32.712 26.231

Other taxes 8.505 7.578

Subtotal 41.217 33.809

Grants receivable 42 2.251

Social Security receivable 2.778 4.573

Total (note 14) 44.037 40.633

Consequently, the Spanish Group companies have adapted their deferred tax rates, taking into account the year in which they will revert.

In accordance with prevailing legislation, taxes cannot be considered defi nitive until they have been inspected by the taxation authorities or before the prescription period pursuant to legislation in force in each of the countries in which the Group operates has elapsed. The Parent has open to inspection all applicable taxes for 2011 and subsequent years.

On 21 December 2015 the Parent received offi cial notice of the commencement of an inspection of the following taxes and years.

Concept Periods

Income tax 2011 a 2014

Value added tax 2012 a 2014

Withholdings on account. Non-resident tax

2012 a 2014

Annual informative summary of transactions

2011 a 2014

To date only notice of verifi cation of the Parent has been received.

At the date of preparing these consolidated annual accounts, the process is just beginning, therefore the Company has no estimates in this respect. Nevertheless the Parent considers that it has paid the applicable taxes correctly. However, discrepancies could arise because of the Parent’s interpretation of prevailing tax legislation, although it considers these would not be signifi cant in relation to the accompanying consolidated annual accounts.

The Group companies consider that all applicable taxes for the years open to inspection have been properly fi led and settled. However, in the event of inspection, discrepancies could arise regarding the companies’ interpretation of prevailing tax legislation, although these are not expected



5Details of balances payable to public entities are as follows:

Thousands of Euros

2015 2014

Taxation authorities payable:

Value added tax 65.098 60.070

Personal income tax withholdings 26.124 28.033

Other taxes 5.712 6.547

Subtotal 96.934 94.650

Repayable grants 2 2

Social Security payable 27.427 29.364

Total (note 26) 124.363 124.016

37. FINANCIAL RISK MANAGEMENT AND HEDGING POLICIES

Financial risk factors

The Group’s activities are exposed to various fi nancial risks: market risk (including currency risk and interest rate risk), credit risk and liquidity risk. The risk management model aims to minimise potential adverse effects on the Group’s profi ts.

Financial risk management is controlled by the Group’s Finance and Control departments. Internal regulations provide written policies for global risk management, as well as policies for specifi c issues such as currency risk, interest rate risk and liquidity risk.

To ensure that the above-mentioned risks are managed appropriately, the Group maintains control over fi nancial information using an internal system that is highly effi cient in all major respects

The Group’s currency risk management policy generally involves hedging 100% of the net exposure arising from transactions in currencies other than the functional currency of each company. Hedging instruments are not used in transactions that are not material, when there is no active market for the hedging instruments, which is the case of certain non-convertible currencies and when other mechanisms are available to offset currency fl uctuations in supplier payments or trade receivables.

The sensitivity analysis of +/-5% variation in the exchange rate for the main functional currencies (other than the Euro) where the Group has exposure due to its foreign subsidiaries is as follows:

Variation in equity 2015

+5% Thousands of Euros

US Dollar 373

Argentine Peso (45)

Brazilian Real (2.096)

Variation in profi t/(loss) 2015


US Dollar (102)

Argentine Peso (12)

Brazilian Real (11.840)

Variation in equity 2014


US Dollar 440

Argentine Peso 47

Brazilian Real 61

1. Market risk

a. Currency risk

The Group operates internationally and is therefore exposed to currency risk when operating with foreign currencies. Currency risk arises from future commercial transactions and recognised assets and liabilities which are presented in a foreign currency that is not the functional currency of each of the companies.

In order to mitigate the impact of exchange rate differences on the projects carried out by the Group in currencies other than that of the country of origin of the transaction, hedging transactions (mainly forward purchases and sales of foreign currency) are arranged with banks. Indra analyses the exchange rate risk at the time each individual project contract is signed and arranges suitable hedges (primarily exchange rate insurance policies) to ensure that future profi ts are not signifi cantly affected by fl uctuations in the exchange rate. No derivative fi nancial instruments are used for speculative ends.

The profi ts of operations with income and expenses denominated in currencies other than the Euro may increase or decrease on consolidation into the Group’s Euro-denominated accounts. Although this risk is partly mitigated by the Group’s signifi cant geographical diversity, exchange rate fl uctuations in the different currencies of Latin America, as the most important region in terms of the Group’s non-Euro activity, could have a detrimental impact on the Group’s results.

The Group’s exposure to currency risk at 31 December 2015 and 2014 is presented in Appendix III. This appendix refl ects the carrying amount of the Group’s fi nancial instruments or classes of fi nancial instruments denominated in foreign currencies (in thousands of Euros).

To compare the gross exposure covered by hedging instruments, based on the Group’s policies, the amounts of foreign subsidiaries in local currency are eliminated.



5

Variation in profi t/(loss) 2014


US Dollar (61)

Argentine Peso (51)

Brazilian Real 222

b. Interest rate risk

Interest rate risk arises due to exposure to movements in the interest rate curves applicable to long-, medium- and short-term bank borrowings. Indra considers arranging fi nancial instruments to manage these risks when circumstances so dictate. At 31 December 2015, Indra holds interest rate hedges for non-current bank borrowings through variable to fi xed interest rate swap contracts. In 2013 the Group carried out a fi xed-interest bond issue, eliminating this risk for a large part of its non-current borrowings (see note 20).

The following table shows the sensitivity of the Group’s consolidated profi t/loss (in millions of Euros) to interest rate fl uctuations:

2015 2014

Interest rate fl uctuation

Interest rate fl uctuation

+0,5% -0,5% +0,5% -0,5%

Impact on loss for the year before tax

(1,62) 1,62 (1,13) 1,13

2. Credit riskIndra is exposed to this risk due to possible default by customers. The credit standing of Indra’s customers is very good. Due to the nature of Indra’s business, its commercial relationships are mainly with large business groups, governments, public sector bodies and public-private partnerships, which are exposed to a lesser extent to the risk of default. Nevertheless, it uses irrevocable letters of credit and hedges transactions through insurance policies to insure collection, especially in the international sales area.

The Group provides for trade receivables when there is objective evidence of impairment. The established procedure excludes the following; Institutional debt, withholdings for warranties, where the third party is client and supplier and suffi cient amounts are involved to offset the debt, where the Group has a document recognising the debt and the client has committed to pay, debt related to customer advances and when there is evidence of negotiations which are expected to end in an agreement with a prompt solution.

These tables present details of the ageing of past-due unimpaired fi nancial assets at 31 December 2015 and 2014.




Less than 3 months

3 to 6 months 6 months to 1 year

More than1 year

Total

Trade and other receivables 271.335 37.693 17.115 66.563 392.706

Total assets 271.335 37.693 17.115 66.563 392.706


Less than 3 months


More than1 year

Total

Trade and other receivables 203.746 32.556 41.896 85.025 363.223

Total assets 203.746 32.556 41.896 85.025 363.223

3. Liquidity risk

Liquidity risk is that which could generate diffi culties in meeting obligations associated with fi nancial liabilities that are settled by delivering cash or other fi nancial assets. The objectives of liquidity risk management are to guarantee a level of liquidity while minimising the opportunity cost and to maintain a fi nancial debt structure based on maturities and sources of fi nancing. In the short term liquidity risk is mitigated by maintaining an adequate level of readily available resources, including cash and short-term deposits, available credit facilities and a portfolio of highly liquid assets.

The Indra Group’s liquidity policy consists of arranging committed long-term credit facilities with banks and temporary investments in an amount suffi cient to cater for projected needs for a given period based on the status and expectations of the debt and capital markets. The above-mentioned foreseen requirements include maturity of net fi nancial debt. Further details of the characteristics and conditions of borrowings and fi nancial derivatives are provided in notes 20 and 24. The Group makes cash fl ow forecasts to ensure that it has suffi cient cash to meet

operating requirements, maintaining suitable levels of availability on undrawn loans



5Details of the Indra Group’s liquidity at 31 December 2015 and 2014 are as follows:


Less than 1 month


1 to 5 years More than 5 years

Total

Loans and borrowings 12.338 8.833 55.587 467.685 254.083 798.526

Financial liabilities from bonds and debentures

- - 729 237.543 - 238.272

Finance lease payables 158 586 1.145 2.605 - 4.494

Trade and other payables 222.793 373.554 216.337 6.901 - 819.585

Other fi nancial liabilities - 9.431 - 8.451 3.065 20.947

Total 235.289 392.404 273.798 723.185 257.148 1.881.824

Derivative fi nancial instruments 128 892 29.916 11.436 - 42.372

Total 235.417 393.296 303.714 734.621 257.148 1.924.196


Less than 1 month


1 to 5 years More than 5 years

Total

Loans and borrowings 27.361 14.924 47.607 224.126 367.581 681.599

Financial liabilities from bonds and debentures

38.891 - - 229.686 - 268.577

Finance lease payables 175 600 1.304 4.337 - 6.416

Trade and other payables 45.953 616.707 86.897 - - 749.557

Other fi nancial liabilities - - - 30.910 - 30.910

Total 112.380 632.231 135.808 489.059 367.581 1.737.059

Derivative fi nancial instruments - 1.345 17.148 8.785 - 27.278

Total 112.380 633.576 152.956 497.844 367.581 1.764.337



538. COMMITMENTS AND OTHER CONTINGENT LIABILITIES

Foreign currency commitments

The Group has arranged forward currency sale and purchase agreements to cover open foreign currency positions at 31 December 2015 (see note 4 t). These commitments are as follows::

2015 Amount in foreign currency

Current Non-current

Currency Purchase Sale Purchase Sale

US Dollar 30.597.934,36 203.871.306,04 2.980.242,94 91.333.997,58

Pound Sterling 5.340.589,87 11.853.429,97 581.764,00 4.102.904,68

Swiss Franc 222.012,63 75.700,00 - -

Chilean Peso 41.183.798,00 3.710.885.003,00 - 10.444.466,00

Mexican Peso - 327.063.563,64 - 1.320.095,00

UAE Dirham - 393.796.002,00 - 152.879.835,00

Australian Dollar 1.847.651,00 5.851.204,80 - 534.376,20

Canadian Dollar 237.426,59 3.239,57 325.000,00 -

Norwegian Krone 202.619,70 - - -

Brazilian Real 1.644.073,00 4.624.712,05 - 452.083,00

Colombian Peso 1.122.492.871,00 14.313.016.656,00 - -

Moroccan Dirham - 12.906.075,00 - -

Kuwaiti Dinar - 104.573,00 - -

Polish Zloty 220.129,73 758.280,85 - -

Peruvian Sol 611.021,82 7.560.045,59 - -

Czech Koruna 640.000,00 - - -

Chinese Yuan 10.618.864,00 - - -

Indian Rupee - 5.750.544,00 - -

Malaysian Ringgit - 71.500.957,00 - 23.332.714,00

Philippine Peso - 49.476.015,00 - -

Turkish Lira - 18.100.870,77 - 6.349.241,59

Sudafrican Rand - 8.055.884,00 - 297.303,00

Romanian Leu 6.206.200,00 - - -



5At 31 December 2014 the Group had arranged the following:

2014 Amount in foreign currency

Current Non-current

Currency Purchase Sale Purchase Sale

US Dollar 52.347.430,94 259.216.152,82 2.741.192,00 127.639.198,00

Pound Sterling 3.704.042,62 7.726.328,71 594.274,00 4.379.690,55

Swiss Franc 412.629,71 991.000,00 - -

Chilean Peso 161.248.988,00 6.314.631.552,00 82.574.845,00 -

Mexican Peso 110.502,00 359.775.872,09 - 9.335.880,55

UAE Dirham 44.560,00 720.000,00 - -

Australian Dollar 896.048,64 9.556.403,28 - 4.350.131,00

Canadian Dollar 195.969,72 602.487,79 880.000,00 -

Norwegian Krone 14.426.031,12 328.417,00 - -

Brazilian Real 1.228.593,19 144.963.094,65 - -

Colombian Peso 2.570.304.975,00 27.595.859.763,00 - -

Moroccan Dirham 1.202.293,00 15.968.141,00 - -

Kuwaiti Dinar - 1.024.705,44 - -

Polish Zloty 229.307,84 14.397.232,20 - -

Peruvian Sol 381.579,00 2.739.307,76 - -

Czech Koruna 5.173.008,50 680.625,00 - -

Chinese Yuan - 2.305.329,00 - -

Indian Rupee - 30.087.614,00 - -

Malaysian Ringgit - 28.889.743,00 - -

Philippine Peso - 116.568.027,17 - -

Russian Rouble 456.515,00 - - -

Romanian Leu - 331.148,00 - -



5At 31 December 2015 and 2014 exchange rate hedges are valued as follows:

Thousands of Euros

2015 2014

Current Non-current Current Non-current

Exchange rate hedges Assets Liabilities Assets Liabilities Assets Liabilities Assets Liabilities

Cash fl ow hedges 1.767 12.890 - 11.009 4.731 7.722 14 7.458

Fair value hedges (66) 18.046 - 428 (3.953) 10.771 - 1.327

Total (note 10) 1.701 30.936 - 11.437 778 18.493 14 8.785

The information on foreign currency cash fl ow hedges is as follows:

• Income of Euros 2,301 thousand was reclassifi ed from equity to the consolidated income statement (an expense of Euros 459 thousand in 2014).

• Correction costs (recognition of ineffi ciency) amount to Euros 2, 619 thousand in 2015 (Euros 947 thousand in 2014).

• A gain of Euros 4,121 thousand attributable to the hedging instrument was recognised in 2015 and a gain of Euros 874 thousand in 2014 (same amount of gain/loss as the hedged item).

The years in which the cash fl ows from non-current foreign currency hedges are expected are as follows:

Thousands of Euros

2015 2014

Assets Liabilities Assets Liabilities

2016 - - 14 5.707

2017 - 7.301 - 747

2018 - 1.277 - 320

2019 - 1.471 - 250

Total - 10.049 14 7.024

Cash fl ow hedges also include interest rate swaps used by the Parent to manage its exposure to interest rate fl uctuations, mainly on non-current bank loans arranged at fl oating rates. The fair value of these swaps, Euros 668 thousand (Euros 1,761 thousand in 2014) has been determined based on the market values of equivalent fi nancial derivatives at the reporting date (see note 21).

The interest rate hedges arranged are swaps that ensure a fi xed interest rate on three non-current loans bearing a fl oating interest rate arranged with two fi nancial institutions. The swap and the loan interest have the same quarterly settlement dates.

Details of the swap are as follows:

Thousands of Euros

2015 2014

Notional amount hedged

Fixed rate average swap

Notional amount hedged

Fixed rateaverage swap

Final maturity Variable rate swapped

76.668 1,68% 103.462 1,60% 2016-2017 Euribor 3 meses



5The impact on the consolidated income statement in 2015 and 2014 was zero as the gain/loss from the fi nancial instrument is offset by the loss/gain (opposite result) of the swap.

39. OPERATING LEASES

The Group has leased certain assets under operating leases from third parties.

The most signifi cant lease contracts are as follows:

Lessor Leased premise Contract signature date

Contract expiry date

Review Review % Security deposits


Testa Inmuebles en Renta, S.A.

Avenida de Bruselas, 35 (Alcobendas)

01/01/2002 30/06/2022 July I.G.P.C. 1.005

Ayuntamiento de Alcobendas

Anabel Segura, 7 (Alcobendas)

01/09/2007 31/05/2017 January I.G.P.C. 423

Gratan, S.L. Tanger, 120 (Barcelona) 01/07/2005 01/01/2017 July I.G.P.C. 660

Grupo CastellviTanger 98-108, Edifi cio Interface (Barcelona)

01/07/2008 31/10/2027 June I.G.P.C. 371

OBENQUE, S.A.Julian Camarillo, nº 16-20. Madrid

26/07/2011 31/12/2021 January I.G.P.C. 192



5Operating lease payments have been recognised as an expense for the year as follows:

Owner Location Contract expiry date

2015 expense

2014 expense

Testa Alcobendas (Madrid) 30/06/2022 6.492 6.405

Ayuntamiento de Alcobendas/Sogepima Alcobendas (Madrid) 31/05/2017 2.746 2.151

Grupo Castellvi Barcelona 31/10/2017 3.248 3.152

Gratana, S.L: Barcelona 01/01/2017 1.280 1.278

Obenque Madrid 31/12/2021 1.318 1.343

Mapfre Vida, S.A. Madrid 29/02/2016 650 737

Construzioni Civili e Commerciali Spa Roma (Italia) 30/06/2020 668 -

Selección de Inmuebles, S.A. Valencia 30/09/2023 737 -

Rentiber Internacional San Fernando de Henares (Madrid) 31/03/2017 744 746

Grupo Integral de Desarrollo Inmobiliario México D.F. (México) 31/12/2022 1.239 780

Portocarrio, S.L. Madrid 07/04/2016 521 692

Auris Andino Inversiones Inmobiliarias Avda. del Valle (Chile) 31/01/2016 590 639

Mapfre Vida, S.A. Madrid 30/04/2017 - 516

Colombiana de Televisión, S.A. Bogotá (Colombia) 30/11/2014 55 503

Edifi cio de Alcobendas, S.A. Alcobendas (Madrid) 31/05/2015 430 431

Inmobiliaria Financiera Bogotá (Colombia) 31/08/2017 33 272

General de Edifi cios y Solares La Coruña 31/05/2014 367 401

Red Tenc. Servicio de Asistencia Sanitaria Málaga 31/08/2021 423 364

Fundación P. Científi co Universidad de Salamanca Salamanca 31/10/2017 243 351

Allenza Toro Spa Roma (Italia) 30/09/2016 - 360

Inmoan, S.L. Torrejon de Ardoz - Madrid 31/10/2019 249 255

Veintisiete, S.L. Barcelona 31/10/2015 421 286

Farrag, S.L. Cordovilla (Navarra) 30/06/2022 286 286

Gasel, S.A. Paraná (Brasil) 31/12/2015 - 279

Morera yVallejo Patrimonioal, S.A. Sevilla 31/12/2019 277 269

Sprilur, S.A. Erandio (Vizcaya) 31/05/2019 230 267

Fernando González Tovar México D.F. (México) 31/07/2015 275 258

Fossgal, S.A. Buenos Aires (Argentina) 31/12/2015 - 258

Telefónica de España, S.A.U. León 31/03/2016 324 -

Parque Cintífi co y Tecnológico de Extremadura Badajoz 31/01/2022 300 -

Otros 3.870 7.540

(*) Others include all amounts lower than Euros 250 thousand.



540. REMUNERATION OF THE BOARD OF DIRECTORS AND SENIOR MANAGEMENT

Remuneration of board members

1. Remuneration for being a member of governing bodies

The board members receive remuneration for acting as such based on their involvement in the different governing bodies.

This remuneration has been determined following the best practices and recommendations included in the remuneration policy approved by the shareholders at their general meeting on 25 June 2015.

By applying the criteria in this remuneration policy the board of directors considered it necessary to reduce their remuneration by 20% on a straight-line basis with effect from January 2015 following a report from the Appointments, Remuneration and Corporate Governance Committee. They therefore receive the following annual amounts: Euros 80 thousand for members of the board of directors; Euros 40 thousand for Audit and Compliance Committee members; Euros 24 thousand for Appointments, Remuneration and Corporate Governance Committee members and Euros 24 thousand for Strategy Committee members. The chairperson of each body receives 1.5 times these amounts. Based on the composition of each body the average annual income is approximately Euros 125 thousand per board member.

An itemised breakdown of total remuneration received by each member of the board of directors of the Parent in 2015 and 2014 for belonging to the governing bodies is presented in the following four tables:

Remuneration of directors (in euros) 2015

Fixed Amount

Board member Board of directors

Strategy committee

Audit and complian-ce committee

Appointments,remuneration and corporate governance committee

Total

F. Abril-Martorell (1) 110.000 33.000 - - 143.000

I. Aguilera 80.000 24.000 20.000 12.000 136.000

J. de Andrés 80.000 - - - 80.000

J.C. Aparicio 80.000 - 40.000 - 120.000

D. García-Pita 80.000 - - 36.000 116.000

L.Lada 80.000 24.000 - - 104.000

E. de Leyva (2) 53.333 16.000 20.000 4.000 93.333

J. March 80.000 24.000 - 12.000 116.000

S. Martínez-Conde 80.000 - 40.000 12.000 132.000

A. Menéndez 80.000 24.000 - 24.000 128.000

J. Monzón (3) 12.500 3.750 - - 16.250

M. de Oriol (4) 26.666 - - 8.000 34.666

I. Santillana 80.000 24.000 50.000 - 154.000

R.Sugrañes 80.000 - - 24.000 104.000

A.Terol 80.000 24.000 50.000 - 154.000

Total 1.082.499 196.750 220.000 132.000 1.631.249

Average remuneration per board member (13 members) 125.481

(1) Chairman since February 2015

(2) Board member since May 2015

(3) Chairman until January 2015

(4) Board member until April 2015



5Remuneration of directors (in euros) 2014

Fixed amount

Board member Board of directors

Delegate committee

Audit and complian-ce committee

Appointments remuneration and corporate governance committe

Total

I. Aguilera 100.000 - 50.000 - 150.000

J. de Andrés 100.000 45.000 - - 145.000

J.C. Aparicio 100.000 - 50.000 - 150.000

Casa Grande de Cartagena (1)

58.333 17.500 - - 75.833

D. García-Pita 100.000 - - 45.000 145.000

L.Lada 100.000 30.000 50.000 - 180.000

J. March 100.000 30.000 - 30.000 160.000

S. Martínez-Conde 100.000 - 50.000 - 150.000

A. Menéndez 100.000 30.000 - 30.000 160.000

J. Monzón 150.000 - - - 150.000

M. Oriol 100.000 - - 30.000 130.000

I. Santillana 100.000 30.000 - 30.000 160.000

R. Sugrañes 100.000 30.000 - - 130.000

A. Terol 100.000 30.000 75.000 - 205.000

Total 1.408.333 242.500 275.000 165.000 2.090.833

Average remuneration per board member (13.6 members) 153.738

(1) Board member until July 2014

During 2015 and 2014 no options on Parent shares were granted to the members of the board of directors, nor did they exercise any options on Parent shares. At the 2015 and 2014 year ends the members of the board of directors do not hold any Parent share options.

In 2015 and 2014 the members of the board of directors have not received any benefi ts or remuneration other

than those disclosed above for belonging to governing bodies. Neither the Parent nor any of the consolidated group companies have assumed any pension commitments on behalf of directors for belonging to these bodies or extended any loans or advances to them.

Without prejudice to the fact that, as indicated, the remuneration of the board members for belonging to

governing bodies is settled entirely in cash, all of the board members use a signifi cant part of the sum received (currently 50% of the net remuneration) to purchase Indra shares, having announced publicly their commitment to retain ownership of these shares until the end of their mandate. The Spanish National Securities Market Commission was informed of this decision in a price sensitive information report fi led on 28 July 2011, and the members of the board have fulfi lled these commitments since then.

2. Remuneration of executive directors for duties delegated by the board of directors.

Irrespective of the remuneration indicated in section 1.1. above, executive directors earn additional remuneration as a result of their contractual relationship with the Parent for performing their executive functions. This remuneration is based on the same criteria and includes the same components as that received by the rest of the Parent’s senior management personnel, therefore for the sake of clarity it is explained along with that of the other senior management personnel in section 2 below.

Remuneration of senior management

1. Characteristics and components of the remuneration system.

The remuneration of the Company’s senior management, comprising the executive directors and general managers, is determined on an individual basis by the board of directors, based on proposals by the Appointments, Remuneration and Corporate Governance Committee.

Since 2002 the Parent has established the remuneration framework for senior management for three year periods.

In 2015, based on a recommendation of the Appointments, Remuneration and Corporate Governance Committee, the board of directors proposed to the shareholders at their general meeting a review of the remuneration scheme for senior management to adapt it to international standards



5Managing Director Javier de Andrés

Corporate general Managers Juan Carlos Baena (3)

Emma Fernández (3)

Carlos González

Javier Lázaro (4)

Antonio Mora (4)

Dolores Sarrión

Juan Tinao

General Managers of Operations Eduardo Bonet

José Cabello

Emilio Díaz (3)

Rafael Gallego

Santiago Roura (3)

José Manuel Pérez-Pujazón

Cristina Ruiz

Carlos Suárez

(1) Since February 2015.

(2) Until January 2015.

(3) Resigned during 2015.

(4) Appointed during 2015

and the recommendations of the new Good Governance Code for listed companies. At the general meeting held on 25 June 2015 the shareholders approved a remuneration policy that refl ects these changes and establishes the remuneration framework for 2015, 2016 and 2017, which includes the following components:

• Fixed remuneration (FR), received entirely in cash and which does not vary, other than in justifi ed exceptional cases, for the three year period. This represents 25-48% of the total annualised remuneration.

• Variable annual remuneration (VAR), which depends on the valuation of the achievement of targets and represents 26-35% of total annualised remuneration when targets are fully met. This remuneration is paid 70% in cash and the other 30% is deferred over three years in three parts. It is paid entirely in Company shares, the number of which is fi xed at the date the variable annual remuneration is accrued based on the average listed price in the previous 30 calendar days.

To determine the extent to which each senior executive has reached his or her goals, the Company weighs up overall targets and the executive’s quantitative and qualitative individual targets for his or her area of responsibility, using the corresponding metrics and scales of achievement for each person.

• (Medium-term remuneration (MTR), which depends on the valuation of the achievement of targets and represents 26-40% of total annualised remuneration when targets are fully met. This is paid entirely in Parent shares, the number being set at the outset, based on the fulfi lment of the targets set for each period (“Performance Share Plan”). These objectives are strategic and medium term, such as the relative total shareholder return (TSR) compared to the IBEX-35.

The medium-term remuneration has been set for a three-year period (2015-2017) and is accrued, if applicable, at the end of that period.

• Remuneration in kind, which mainly consists of a life insurance policy, health insurance and use of a car.

The weighting of each of the above remuneration components is as follows:

Chairman and CEO General managers

FR 25% 33%-48%

VAR 35% 26%-32%

MTR 40% 26%-35%

Additionally the two executive directors and four general managers are benefi ciaries of an early retirement and long-term savings scheme (ERLTSS) externalised to an insurance company as an endowment life insurance. The Parent makes an annual defi ned contribution for each benefi ciary, who has the right to receive the accumulated amount in the early retirement and long-term savings scheme at 62 or earlier if they leave the Parent for reasons not attributable to themselves. The annual contributions are determined as a percentage of the total annualised remuneration of the senior executive and are within the range of 12-17% of the remuneration.

These remuneration components are explained in detail in section A of the Annual Remuneration Report, including information on the targets set for senior management in the case of variable remuneration as well as the procedures and methodology to measure achievement.

2. Remuneration amounts

In 2015 the composition of the senior management team was as follows::

Chairman Fernando Abril-Martorell (1)

Javier Monzón (2)



5

(1) Data in respect of the 15 general managers named at the start of this

section 2.2.

(2) Data in respect of the seven people who were general managers in 2014.

(3) Amount received by the senior managers Mr Juan Carlos Baena, Mr Emilio

Díaz, Ms Emma Fernández and Mr Santiago Roura upon termination of their

contractual relationship with the Parent.

(4) The amount received by three senior managers upon termination of the

contractual relationship with the Parent as liquidation of the ERLTSS. This

amount was paid by the insurer contracted by the Parent to externalise this

scheme.

Below is a breakdown of the remuneration of each executive director:


Fernando Abril-MartorellChairman

Javier de AndrésManaging Director

Javier MonzónChairman (until January 2015)

2015 2014 2015 2014 2015 2014

FR 711 - 550 550 83 1.000

VAR 448 - 192 - - -

MTR - - - - (1) - - (1)

Remuneration in kind 30 - 37 35 22 125

Share-based payments - - - 550 - 1.000

Subtotal 1.189 - 779 1.135 105 2.125

Other - - - - 3.769 (2) -

ERLTSS - - - - 12.067 (3) -

Total 1.189 - 779 1.135 15.941 2.125

(1) On the recommendation of the Appointments, Remuneration and

Corporate Governance Committee, the board of directors agreed to cancel the

medium term incentive for 2014-2016 and replace it with the prevailing MTR,

which based on the evaluation of the fulfi lment of targets by the executive

directors, resulted in Euros 0 for both.

(2) This fi gure includes the amount received at the time their contractual

relationship with the Company was terminated (Euros 1,019 thousand) for

the following: (i) contractual term of notice and (ii) the proportional part of

extraordinary salary payments and untaken statutory leave. It also includes

the consideration accrued in the year (Euros 2,750 thousand) in respect of

the non-compete agreement signed with the Parent.

(3) The amount received upon termination of the contractual relationship

with the Parent as liquidation of the ERLTSS. This amount was paid by the

insurer contracted by the Company to externalise this scheme.

The current MTR will be accrued at the end of the three-year period (2015-2017) and, where applicable, will be settled after the 2017 year end.

The amounts corresponding to other senior management

that are not executive directors are as follows:

(Thousands of Euros) 2015 (1) 2014 (2)

FR 4.176 2.800

VAR 1.162 722

MTR - 943

Remuneration in kind 208 294

Share-based payments - 1.410

Subtotal 5.546 5.226

Other 9.706 (3) -

ERLTSS 5.581 (4) -

Total 20.883 5.226



5operations have signed non-compete clauses applicable for two years from the termination of their contractual relationship. In return they are respectively entitled to compensation of 0.75 times and 0.5 times their total annualised remuneration for each year of compliance..”

41. INFORMATION PROVIDED BY THE MEMBERS OF THE BOARD OF DIRECTORS AS REQUIRED BY ARTICLE 229 OF THE SPANISH COMPANIES ACT

After reviewing the information reported by the secretary to the board, the directors of the Parent and their related parties have had no confl icts of interest and are not in a situation of confl ict of interest requiring disclosure in accordance with article 229 of the Revised Spanish Companies Act.

42. R&D&INNOVATION ACTIVITIES

R&D and innovation expenditure is incurred on a signifi cant part of the activities carried out by the Indra Group. These expenses are taken to the consolidated income statement when they are accrued (see note 4).The overall expense for R&D&innovation projects carried out in 2015, including capitalised projects (see note 9), amounts to Euros 152,287 thousand, equivalent to 5.3% of the Group’s total sales during this year. R&D&innovation expenses incurred by the Parent account for approximately 98% of Group’s total expenses of this nature for the year.In 2014, R&D&innovation expenses amounted to Euros 195,122 thousand, equivalent to 6.6% of total Group sales.

The current MTR will be accrued at the end of the three-year period (2015-2017) and, where applicable, will be settled after the 2017 year end. In 2014, on the recommendation of the Appointments, Remuneration and Corporate Governance Committee, the board of directors agreed to cancel the medium term incentive for 2014-2016 and replace it with the prevailing MTR, which based on the evaluation of the fulfi lment of targets by the general managers, resulted in Euros 943 for this management group.

The current remuneration system does not contemplate providing shares as autonomous remuneration, therefore in 2015 neither executive directors nor senior management received any remuneration for this concept. The gross remuneration in shares indicated in the above tables led to 46,535 shares being conveyed to Mr Monzon (the former chairman), 26,355 shares to the CEO and 74,963 shares to the group of seven people who were general managers at that time.

No share options were extended to senior management personnel during 2015 or 2014 and senior management did not take up any options on Parent shares during the period.

The Company’s contributions to the ERLTSS on behalf of senior management were as follows:

Fernando Abril-Martorell

(Chairman)

Javier de Andrés

(Managing Director)

Javier Monzón(Chairman

until January 2015)

General managers

2015 2014 2015 2014 2015 2014 2015 2014

426 - 374 374 50 600 938 1.120

In 2015 and 2014 members of senior management did not receive any benefi ts, compensation or remuneration other than those indicated in this note. Neither the Parent nor any of the Group companies has assumed any pension commitments on behalf of or extended any loans or advances to senior management.

3. Contractual framework for executive directors and senior management.

The executive directors have service contracts with the Parent that govern the conditions applicable to their professional relationship with the Company.

These contracts are indefi nite and the CEO’s contract contains no golden parachute clauses or termination benefi ts.

The current executive chairman has a temporary right to termination benefi ts equivalent to the positive difference between the balance accumulated in his favour at such a time in the ERLTSS and the equivalent of one year’s total salary.

In 2015 three of the present general managers have a transitory right to termination benefi ts, which decreases over time, of between 0.4 and 1.1 times their total annualised salary. This right will gradually be reduced until extinguished when the sum of: (i) the cumulative amount for each of them in the early retirement and long -term savings scheme and (ii) the corresponding compensation receivable in the event of unfair dismissal for their previous ordinary employment relationship, reaches a gross amount equivalent to 45 days of the annualised salary per year of service calculated from the date of joining the Parent, up to a maximum of 42 monthly payments.

The contracts of another three general managers include a temporary right to termination benefi ts equivalent to between one and two years of their annualised salary. This right is extinguished either after a transitional period after their joining the Parent or when the compensation they are legally entitled to exceeds the minimum amount guaranteed.

The contracts of seven senior managers establish a three month notice period in the case of termination by the Parent, which if not respected, must be compensated by an amount equivalent to their total annualised salary corresponding to the notice period in question.The executive directors and two general managers of



543. ENVIRONMENTAL INFORMATION

The Group’s activities have not changed signifi cantly in comparison with prior years, and therefore the environmental impact continues to be low. Consequently, the Parent’s directors consider that no signifi cant contingencies exist in relation to the protection or improvement of the environment and therefore have made no related provision for environmental liabilities and charges in 2014 or 2015.

Similarly, no signifi cant assets have been allocated to protect and improve the environment, and no material expenses of this nature have been incurred during the year. Consequently, the Group has neither requested nor received any environmental grants during the years ended 31 December 2015 and 2014.

Notwithstanding the above, one of the foundations of Indra’s Corporate Governance is the commitment to protect the environment during the course of its activities. This has been seen in the adoption of an environmental management system based on ISO 14001, implemented in the Group’s various work centres. Since the outset the greatest effort has been made in the facilities of the most important centres of the Parent. With regard to Spain, the certifi cation awarded under this standard to the work centres in Arroyo de la Vega (Avda. de Bruselas - Alcobendas), San Fernando de Henares, Torrejón de Ardoz and Triángulo (c/ San Julián - Alcobendas), Aranjuez, Barcelona (c/Roc Boronat), Barcelona - Interface, Avda. de Arteixo (La Coruña), Anabel Segura (Alcobendas-Madrid), Ciudad Real, c/ Aviación (Sevilla), Erandio (Bilbao), Baracaldo (Bilbao), c/ Alcalá (Madrid), c/ Julián Camarillo (Madrid), Bembibre (León), c/ Severo Ochoa (Campanillas – Malaga), c/ Adaja (Villamayor de la Armuña – Salamanca), Cr Prado de la Torre (Bollullos de la Mitación – Sevilla), Fuente Alamo (Cartagena – Murcia) and Puerto de Santa Maria, in 2015 was extended to the work centres in Ferrol, where activity is carried out by Indra Sistemas, S.A. and in c/Badajoz (Barcelona) where activity is carried out by Indra BPO Servicios S.L.U.

In addition to these two companies, the following companies had already been certifi ed to operate in the aforementioned centres; Indra Sistemas de Seguridad, S.A., Indra Software Labs, S.L., Indra BPO, CAYMASA, Indra Emac and Advanced Logistics Group, S.A.

With regard to international subsidiaries, an environmental management system based on ISO 14001 has been implemented in six centres in Colombia where Indra Colombia LTDA and Indra Sistemas S.A. Sucursal Colombia carry out activity, in two centres in Portugal of Indra Sistemas Portugal, S.A. and one centre of Indra Australia Pty Ltd. in Australia. Furthermore certifi cation has been awarded in 2015 to two centres in Colombia of Indra Colombia LTDA and Indra Sistemas S.A. Sucursal Colombia, one centre in Italy of Indra Italia S.p.A., one centre in Mexico of Indra Sistemas México SA de CV, Azertia Tecnologías de la Información México SA de CV and Soluziona México SA de CV and one centre in Brazil of Indra Brasil Soluções e Serviços Tecnológicos S.A. and Indra Tecnologia Brasil Ltda.The environmental initiatives relating to energy effi ciency in our facilities were continued in 2015 and ISO 50001 and Leed Gold certifi cations were obtained for the building in Arroyo de la Vega in Alcobendas (Madrid).

Furthermore, the Group has maintained the objective established for 2014-2020 of reducing the greenhouse gas emissions generated by our activities in the Indra Group’s installations. The Strategic Environmental Plans established for Portugal, Colombia, Brazil, Italy, Mexico, Chile and Peru, in line with Indra’s Global Strategic Environmental Plan have been monitored in 2015.



5


Type of transaction

With shareholdersr

With board members

Total at 31.12.2015

Sale of goods and services

17.809 - 17.809

Purchase of goods and services

336 211 547

Expenses for fi nancial services

5 - 5

18.150 211 18.361


Type of transaction

With shareholdersr

With board members

Total at 31.12.2014

Sale of goods and services

11.041 - 11.041

Purchase of goods and services

424 1.434 1.858

Expenses for fi nancial services

6 - 6

11.471 1.434 12.905

Transactions with shareholderss

TAll transactions carried out with shareholders in 2015 and 2014 were with SEPI and Banca March or with companies of their respective groups.

Sale of goods and services refl ects services provided to these shareholders by the Indra Group in the ordinary course of business.

Purchases of goods and services refl ect services provided to the Indra Group in the ordinary course of business.

Expenses for fi nancial services refl ect expenses and interest on the management of guarantees by Banca March.

44. AUDIT FEES

KPMG Auditores, S.L., the auditors of the consolidated annual accounts of the Group, and other companies affi liated with KPMG International have invoiced the following net fees for professional services during the years ended 31 December 2015 and 2014:

Thousands of Euros

2015 2014

KPMG Auditores, S.L.

Affi liates of KPMG

International

Total KPMG Auditores, S.L.

Affi liates of KPMG

International

Total

Audit services 737 757 1.494 513 739 1.252

Other services 8 196 204 15 225 240

745 953 1.698 528 964 1.492

The amount shown in the above table includes the total fees for audit and other services rendered in 2015 and 2014, irrespective of the date of invoice.

Other auditors charged total fees for audit services of Euros 153 thousand in 2015 (Euros 124 thousand in 2014).

45. RELATED PARTY TRANSACTIONS

Related party transactions with signifi cant shareholders and board members do not represent, either individually or collectively, a signifi cant amount of the Parent’s revenues or statement of fi nancial position at 31 December 2015 or 2014. All of these transactions took place in the normal course of the Parent’s business and in market conditions, and were authorised by the board of directors as required by its regulations. However, it is Parent policy to publish detailed and transparent information on these transactions.

During 2015 and 2014, commercial, fi nancial and professional services transactions were carried out with signifi cant shareholders at that time or with their related parties, as well as with companies linked to the board member Ms. De Oriol.

Details of related party transactions in 2015 and 2014, by type of transaction, are shown in the table below.



5The assets, liabilities, income and expenses of transactions performed through the temporary joint ventures, which in 2015 and 2014 were consolidated according to the criteria explained in note 2, are as follows:

Thousands of Euros

2015 2014

Non-current assets 10.848 1.690

Current assets 43.711 33.892

Non-current liabilities (8.174) (6.221)

Current liabilities (47.436) (28.614)

Revenues (73.756) (55.878)

Subcontracting and other expenses 74.807 55.131

- -

Appendix II provides details of the temporary joint ventures consolidated by the Group.

46. EVENTS AFTER THE REPORTING PERIOD

No signifi cant events have occurred in the Group after the end of the year.

In 2015 and 2014 the Indra Group has held a guarantee facility which matures annually of Euros 2,465 thousand and Euros 2,549 thousand, respectively.

The dividends paid to shareholders represented on the board of directors were as follows:

Thousands of Euros

2015 2014

Grupo S.E.P.I - 11.240

Corporación Financiera Alba - 6.320

Casa Grande Cartagena - 2.233

Transactions with board members

Transactions with companies related to Ms de Oriol account for the entire balance listed under transactions with board members.

Purchases of goods and services refl ect security services provided by companies belonging to the Seguriber-Umano Group, in which Ms. de Oriol holds a 95.6% stake (direct and indirect) and the position of chairwoman. The amount shown in 2015 refers solely to the fi rst four months of the year when Ms. de Oriol was a director of Indra. That shown in 2014 refers to the whole year.

The amounts paid in 2015 and 2014 were respectively Euros 211 thousand and Euros 1,434 thousand.

Details of remuneration of the members of the board of directors are provided in note 40.

Transactions with senior management

No transactions with senior management personnel or their related parties have taken place in 2015 or 2014.

Details of senior management remuneration are provided in note 40.

Transactions with associates and joint ventures

In 2015 and 2014 the transactions performed with joint ventures through associates were as follows:


Receivables Payables Income Expenses

Associates 4.943 14.266 22.054 1.756

4.943 14.266 22.054 1.756


Receivables Payables Income Expenses

Associates 5.674 13.218 10.950 2.063

5.674 13.218 10.950 2.063

Note: Receivables and payables comprise the amounts recognised at 31

December each year.



Details of Group companies at 31 December 2015 (Anexo I)

6

Company Registered offi ce Activity

1.- Parent

Indra Sistemas, S.A. Avenida de Bruselas, 35 Alcobendas (Madrid)Design, development, production, integration and maintenance of systems, solutions and services based on

information technology: computing, electronics and communications.

2.- Subsidiaries

Indra Emac, S.A. Calle Mar Egeo, 4 Pol.Ind.1 San Fernando de Henares (Madrid) Engineering and maintenance of aerial defence systems and other related areas.

Indra Sistemas de Seguridad, S.A. Carrer de Roc Boronat, 133 (Barcelona)Design, development, integration and maintenance of systems and solutions for surveillance and installation

security.

Indra Sistemas de Comunicaciones Seguras, S.L. Avenida de Bruselas, 35 Alcobendas (Madrid)Research, engineering, design, manufacturing, development, sale, installation, maintenance and repair of security

equipment, devices and systems for data communication, encoding systems, encrypting, signals and command and control centres.

Inmize Capital, S.L. Avenida de Bruselas, 35 Alcobendas (Madrid) Management, engineering, marketing and sale of defence systems.

Inmize Sistemas, S.L. Avenida de Bruselas, 35 Alcobendas (Madrid) Management, engineering, marketing and sale of defence systems.

Indra Software Labs, S.L. Avenida de Bruselas, 35 Alcobendas (Madrid) Design, manufacture and testing of IT system development products.

Teknatrans Consultores, S.L. Portuetxe, 23, (San Sebastián) Technical architecture and engineering services.

Indra SI, S.A. Buenos Aires (Argentina)Design, development, production, integration and maintenance of systems, solutions and services based on


Politec Argentina, S.A. Buenos Aires (Argentina)Design, development, production, integration and maintenance of systems, solutions and services based on


Azertia Tecnologías de la Información Argentina S.A. Buenos Aires (Argentina)Design, development, production, integration and maintenance of systems, solutions and services based on


Computación Ceicom, S.A. Buenos Aires (Argentina)Data processing, consultancy services and technical assistance in systems analysis, development and

implementation of programmes for computing equipment.

Indra Company Brasil Tecnologia, Ltda. Sao Paulo (Brasil)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Brasil Soluciones y Servicios, S.A. Sao Paulo (Brasil)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Tecnología Brasil LTDA Brasilia (Brasil)Design, development, production, integration and maintenance of systems, solutions and services based on

information technology: computing, electronics and communications for the air traffi c, defence, ground transport and traffi c, shipping and railway sectors and for electoral use.

This appendix forms an integral part of notes 1 and 5 to the consolidated annual accounts, in conjunction with which it should be read.



6


Indra Colombia LTDA. Bogota, Colombia)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Sistemas Chile, S.A. Santiago de Chile (Chile)Design, development, production, integration and maintenance of systems, solutions and services based on


Soluziona Guatemala, S.A. Guatemala (Guatemala)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Sistemas México S.A. de C.V. Mexico City (Mexico)Design, development, production, integration and maintenance of systems, solutions and services based on


Azertia Tecnología de la Información México S.A.C.V. Mexico City (Mexico)Design, development, production, integration and maintenance of systems, solutions and services based on


Soluziona Mejico S.A. de C.V. Mexico City (Mexico)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Panamá, S.A. Panama (Panama)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Company Perú S.A.C. Lima (Peru)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Perú, S.A. Lima (Peru)Design, development, production, integration and maintenance of systems, solutions and services based on


Soluciones y Servicios Indra Company Uruguay, S.A. Montevideo (Uruguay)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra USA Inc. Philadelphia (USA)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra USA IT Services Atlanta (USA)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Italia Spa Rome (Italy)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Czech Republic s.r.o. Prague (Czech Republic)Design, development, production, integration and maintenance of systems, solutions and services based on





6


Indra Eslovakia, a.s. Bratislava (Slovakia)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Slovensko, s.r.o. Bratislava (Slovakia)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Sisteme S.R.L. Chisinau (Moldova)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Sistemas Polska S.p.z.o.o Warsaw (Poland)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Sistemas Portugal, S.A. Lisbon (Portugal)Design, development, production, integration and maintenance of systems, solutions and services based on


Elektrica Soluziona S.A. (Romania) Bucharest (Romania)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Ucrania L.L.C. Kiev (Ukraine)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Kazakhstan Engineering Llp Astana (Kazakhstan)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Turkey Teknolojileri Çözümleri Anonim Sirketi Istambul (Turkey)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Beijing Information Technology Systems Co. Ltd. Beijing (China)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Radar Technology (Tianjin) Co., Ltd. Tianjin (China) Design, development, production and maintenance of navigation and landing support and air traffi c control systems.

Indra Philippines, Inc. Quezon (Philippines)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Technology Solutions Malasya Sdn Bhd Kuala Lumpur (Malasya)Design, development, production, integration and maintenance of systems, solutions and services based on


PT Indra Indonesia Jakarta (Indonesia)Design, development, production, integration and maintenance of systems, solutions and services based on





6


Indra Sistemas India Private Limited New Delhi (India)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Bahrain Consultancy SPC Manama (Bahrein)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Arabia Company Ltd. Jeddah (Saudi Arabia)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Technology Solutions Co, Ltd. Riyadh (Saudi Arabia)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra L.L.C. Muscat (Oman)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Sistemas Magreb S.A.R.L Rabat (Morocco)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Limited (Kenya) Nairobi (Kenya)Design, development, production, integration and maintenance of systems, solutions and services based on


Soluziona Professional Services (Private) Ltd Harare (Zimbabwe)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Technology South Africa Pty Ltd Johannesburg (South Africa)Design, development, production, integration and maintenance of systems, solutions and services based on


Indra Australia Pty Ltd Sydney (Australia) Design, development, production and maintenance of navigation and landing support and air traffi c control systems.

Indra BPO, S.L. Avenida de Bruselas, 35 Alcobendas (Madrid) Business process outsourcing (BPO), document management services and mortgage management.

Indra BPO Servicios, S.L. Avenida de Bruselas, 35 Alcobendas (Madrid) Data capture and digitalisation.

Central de Apoyos y Medios Auxiliares, S.A.U. Manufacturas, 11. Mairena del Aljarafe (Seville) Business process outsourcing (BPO).

Indra II Business Process Outsorcing Portugal, unipersonal LTD

Lisbon (Portugal) Business process outsourcing (BPO).

OUAKHA Services, Saarl AU (Morocco) Tangier (Morocco) Back-offi ce process outsourcing (BPO) for fi nancial institutions.




6


IFOS (International Financial Operational Services), S.A.

Buenos Aires (Argentina)Business process outsourcing and management and design, development, production, integration and maintenance

of systems for fi nancial institutions.

Indra Business Consulting, S.L. Calle Tánger, 98 Barcelona Professional services consisting of business, technological and solutions consultancy.

Advanced Logistics Group, S.A. Calle Tánger, 98 Barcelona Preparation of studies, technical projects and reports on transport engineering, consultancy and logistics.

Europraxis ALG Consulting Maroc, S.A. Casablanca (Morocco) Professional services consisting of business, technological and solutions consultancy.

Europraxis ALG Consulting Brasil, Ltda. Sao Paulo (Brazil) Professional services consisting of business, technological and solutions consultancy..

Indra Business Consulting ALG Mexico S.A. de C.V. Mexico City (Mexico) Professional services consisting of business, technological and solutions consultancy.

Europraxis ALG Consulting Andina, S.A.C. (Perú) Lima (Peru) Professional services consisting of business, technological and solutions consultancy.

Europraxis ALG Consulting, Ltd (U.K.) Slough, Berkshire (UK) Professional services consisting of business, technological and solutions consultancy.

Prointec, S.A. Avda. de Burgos 12, MadridEngineering and consultancy services mainly in relation to the environment, transport, construction, water and

industry.

Prointec Engenharia, Ltda. Sao Paulo (Brazil) Civil engineering services and consultancy.

Ingeniería de Proyectos e Infraestructuras Mexicana, S.A. de C.V.

Mérida (Mexico) Technical architecture and engineering services.

Prointec Panamá, S.A. Ancon (Panama) Civil engineering services and consultancy.

Prointec Usa LLc Sacramento, California (USA) Research and development of autopilot systems and advanced solutions in unmanned aircraft systems.

Consis Proiect SRL Bucharest (Romania) Civil engineering services and consultancy.

Prointec Romaría S.R.L. (Romania) Bucharest (Romania) Civil engineering services and consultancy.

Prointec India Privated Ltd Haryana (India) Civil engineering services and consultancy.




6


Indra Advanced Technology, S.L. Avenida de Bruselas, 35 Alcobendas (Madrid)Design, development, production, integration, operation, repairs and maintenance and marketing of systems,

solutions and products.

AC-B air Traffi c Control & Business Systems GmbH (Germany)

Markdorf (Germany)Design, development, production and maintenance of systems, solutions and services based on the use of

information technologies as well as navigation and landing support and air traffi c control systems.

Avitech AG Friedrichshafen (Germany) Design, development, production and maintenance of navigation and landing support and air traffi c control systems.

Avitech S.R.O. Bratislava (Slovakia) Design, development, production and maintenance of navigation and landing support and air traffi c control systems.

Indra Navia AS (Park Air, Norway) Oslo (Norway) Design, development, production and maintenance of navigation and landing support and air traffi c control systems.

Normeka, AS Rømskog (Norway) Design, development, production and maintenance of navigation and landing support and air traffi c control systems.

3.- Associates

I3 Televisión, S.L. Avda. Isla Graciosa 13, San Sebastián de los Reyes (Madrid)Design, development, manufacture, supply, assembly, repair, maintenance, installation and marketing of IT products,

solutions, applications and systems for the audiovisual industry.

IRB Riesgo Operacional S.L. Avenida de Bruselas, 35 Alcobendas (Madrid)Design, development, production, integration and maintenance of systems, solutions and services based on


Saes Capital, S.A. Paseo de la Castellana 55, MadridThrough associates, the design, development, production, integration, maintenance and operation of electronic, IT

and communications systems mainly related to naval systems and submarine acoustics.

Eurofi ghter Simulation System GmbH Munich (Germany) Development and production of fl ight simulators for the Eurofi ghter EF-2000.

Euromids SAS Paris (France) Development, manufacture and commercialisation of tactical communications systems.

Green Border OOD Sofi a (Bulgaria)Design, development, integration and maintenance of systems and solutions for surveillance and installation

security.

Tower Air Traffi c Services, S.L. Carretera de Loeches 9, Torrejon de Ardoz (Madrid) Airfi eld transit services for the management of airborne traffi c.

A4 Essor, S.A.S. Paris (France) Development of a security programme for radiocommunications.




6


Societat Catalana Per a la Mobilitat, S.A. Calle Roc Boronat, nº 133, BarcelonaExecution of the T-Mobilitat project to introduce a new technological, tariff and management system for the

Metropolitan Transport Authority.

Iniciativas Bioenergéticas, S.L. Gran Vía Juan Carlos I nº9, Logroño (La Rioja)Study, promotion, development and execution of groundbreaking projects relating to the environment and energy

generation.

Logística marítima de Tuxpan S.A.P.I. de C.V. Veracruz (Mexico) Engineering and consultancy services rendered in the area of port infrastructures.

Indra México

Indra Isolux México SA de CV Mexico City Supply, installation and start up of equipment for toll management and/or traffi c control systems.

Visión Inteligente Aplicada S.A de C.V Mexico City Services rendered

EFI Túneles Necaxa SA de CV Munich (Germany)Analysis, advisory services, project preparation and construction of public works, as well as any type of civil, water-related, electrical or infrastructure and similar works, in the public and private sectors, the purchase of construction

materials and supplies and their transport and in general, anything construction-related.




Financial information on Group companies at 31 December 2015(Anexo I)

6

InterestEquity Total

operating profi t/(loss)Individual

profi t/(loss) after tax 1.- Parent Direct Indirect Total

1.- Indra Sistemas

Indra Sistemas 441.710 1.920.020 (466.182)

2.- Subsidiaries

Indra Emac, S.A. 100 % - 100 % 2.726 14.938 1.842

Indra Sistemas de Seguridad, S.A. 100 % - 100 % 3.441 11.045 (4.382)

Indra Sistemas de Comunicaciones Seguras, S.L. - 100 % 100 % 7.848 2.489 27

Inmize Capital, S.L. 80 % - 80 % 1.536 - (7)

Inmize Sistemas, S.L. - 50 % 50 % 7.739 339 4

Indra Software Labs, S.L. 100 % - 100 % 38.003 167.155 9.715

Teknatrans Consultores, S.L. 100 % - 100 % 532 369 54

BMB Group 100 % - 100 % 28.103 155.382 4.545

Consultancy Group 100 % - 100 % 10.958 50.321 (13.480)

Grupo Prointec, S.A. 100 % - 100 % 15.289 39.184 (19.896)

Grupo Indra Advanced Technology, S.L. 100 % - 100 % 53.366 79.032 1.274

Indra SI, S.A. 83 % 17 % 100 % 3.736 82.887 424

Politec Argentina 100 % - 100 % 6 - (12)

Azertia Tecnología de la Información Argentina S.A. 100 % - 100 % (911) 2.276 (161)

Computación Ceicom 100 % - 100 % 1.751 6.269 (468)

Indra Company Brasil LTDA 100 % - 100 % (31.367) 3.959 (23.906)

Indra Brasil SA 100 % - 100 % (5.266) 220.764 (237.740)

Indra Tecnología Brasil LTDA 100 % - 100 % (189) 1.333 (3.803)

Indra Colombia LTDA. 100 % - 100 % 12.474 57.460 1.894

Indra Sistemas Chile S.A. 100 % - 100 % 13.382 46.931 (2.451)




6

InterestEquity

Totaloperating

profi t/(loss)

Individualprofi t/(loss) after

taxCompany Direct Indirect Total

Soluziona S.A. Guatemala 100 % - 100 % 134 - -

Indra Sistemas México, S.A. de C.V. 100 % - 100 % 9.804 101.975 (7.343)

Azertia Tecnología de la Información México S.A. de C.V. 100 % - 100 % 10.549 5.220 (1.261)

Soluziona México S.A. de C.V. 100 % - 100 % (2.910) 13.225 988

Indra Panama, S.A. 100 % - 100 % 2.389 14.150 (2.446)

Indra Company Perú SAC 100 % - 100 % 579 109 (1.069)

Indra Perú, S.A. 100 % - 100 % 9.372 32.250 (6.074)

Soluciones y Servicios Indra Company Uruguay S.A. 100 % - 100 % 1.245 4.453 (52)

Indra Puerto Rico Inc 100 % - 100 % 139 2.571 138

Indra USA, Inc 100 % - 100 % 2.387 18.316 (1.757)

Indra USA IT Services 100 % - 100 % 2.198 122 (441)

Indra Italia Spa (Visiant Galyleo Spa) 100 % - 100 % 12.009 64.899 650

Indra Czech Republic s.r.o. 100 % - 100 % 2.785 3.703 (669)

Indra Eslovakia, a.s. 100 % - 100 % 102 1.650 (557)

Indra Slovensko s.r.o. - 100% 100 % 5 - (1)

Indra Sisteme S.R.L. (Moldavia) 100 % - 100 % 357 827 168

Indra Polska Sp.z.o.o 100 % - 100 % 249 532 (800)

Indra Sistemas Portugal, S.A. 100 % - 100 % 4.371 21.112 (2.723)

Electrica Soluziona S.A. (Romania) 51 % - 51 % 1.890 2.918 326

Indra Kazakhstan Engineering Llp 51 % - - (962) 11.333 (1.375)

Indra Turkey 100 % - 100 % (605) 3.855 (33)

Indra Beijing Information Technology Systems Ltd. (China) 100 % - 100 % 2.367 3.835 196

Indra Radar Technology (Tianjin) Co., Ltd. 70 % - 70 % (200) - (60)




6

InterestEquity

Totaloperating

profi t/(loss)


tax Company Direct Indirect Total

Indra Philippines INC 50 % - 50 % 16.577 35.251 2.931

Indra Technology Solutions Malasya Sdn Bhd. 70 % - - (113) 3.550 (305)

Indra Indonesia 100 % - - (197) 228 (1.515)

Indra Sistemas India Private Limited 100 % - 100 % 2.753 4.249 (1.550)

Indra Bahrain Consultancy SPC 100 % - - (11.453) 3.555 (13.892)

Indra Arabia LLC CO 95 % 5 % 100 % 18.051 41.958 1.853

INDRA L.L.C (Oman) 100 % - 100 % - - -

Indra Sistemas Magreb S.A.R.L. 100 % - 100 % 730 2.506 120

Indra Limited (Kenya) 100 % - 100 % 3.420 5.912 658

Soluziona Professional services (private) Limited (Zimbabwe)

70 % - 70 % - - -

Indra Technology South Africa 62 % - 62 % (1.872) 794 (829)

Indra Australia Pty Limited 100 % - 100 % 3.284 36.487 (3.202)

Indra Technology Solutions Malaysia Co Ltd 100 % - 100 % - - -

4.- Associates

Saes Capital, S.A. 49 % 49 % - - -

Eurofi ghter Simulation System GmbH 26 % 26 % - - -

Euromids SAS 25 % 25 % - - -

A4 Essor SAS 21 % 21 % - - -

Tower Air traffi c 50 % 50 % - - -

Green Border OOD 50 % 50 % - - -

Sociedad Catalana per a la mobilitat 25 % 25 % - - -

I-3 Televisión S.L. 50 % 50 % - - -

IRB Riesgo Operacional S.L. 33 % 33 % - - -




6

InterestEquity

Totaloperating

profi t/(loss)

Individual profi t/(loss) after


BMB Group composition

2.- Subsidiaries

Indra BPO S.L. 21.083 26.890 4.764

OUAKHA Services, Sarl AU (Morocco) 100 % - 100 % (293) - (17)

Indra BMB Servicios Digitales, S.A. 100 % - 100 % 50.497 119.572 6.726

Central de Apoyos y Medios Auxiliares, S.A.U. (CAYMASA) 100 % - 100 % (1.221) 9.087 (3.039)

IFOS (Argentina) 80 % 20 % 100 % 41 - (9)

Indra II BPO Portugal 100 % - 100 % 581 6.301 (85)

Consulting Group composition

2.- Subsidiaries

Indra Business Consulting, S.L. - - 16.582 37.845 (18.669)

Europraxis ALG Consulting, Ltd. (UK) 100 % - 100 % 46 - (29)

Indra Consultoría de Negocios Brasil LTDA 99,99 % 0,01 % 100 % (5.105) 2.146 (676)

Advanced Logistics Group, S.A. 100 % - 100 % (614) 7.780 (1.476)

Indra Business Consulting ALG Mexico 100 % - 100 % 491 4.400 284

Advanced Logistics Group Andina - 100 % 100 % 261 (9) (107)

Europraxis Alg Maroc 66 % 34 % 100 % 68 - 929

Prointec, S.A. Group composition

2.- Subsidiaries

Prointec, S.A. 18.327 39.398 (19.367)

Consis Proiect SRL (Romania) 100 % - 100 % 1.505 1.010 8

Ingenieria de Proyectos de Infraestructuras Mexicanas 100 % 100 % 7.632 2.754 (1.241)

Prointec Romaría S.R.L. (Romania) 100 % - 100 % (60) 135 2

This appendix forms an integral part of notes 1 and 5 to the consolidated annual accounts, in conjunction with which it should be read..



6

InterestEquity

Totaloperating

profi t/(loss)



Prointec Engenharia, Ltda. 99,99 % - 100 % 31 625 (193)

Prointec Panama 75 % - 75 % (124) - -

Prointec USA 100 % - 100 % 834 997 173

Composition of Indra Advanced Technology S.L. Group

2.- Subsidiaries

Indra Advanced Technology, S.L. 47.170 - (30)

AC-B air Traffi c Control & Business Systems GmbH (Alemania) 100 % - 100 % 1.499 1.717 21

Avitech AG 100 % - 100 % 2.939 16.563 (2.379)

Avitech S.R.O. - 100 % 100 % - - -

Indra Navia AS 100 % - 100 % 19.842 60.753 3.852

Normeka, AS - 66 % 66 % 3.219 5.832 324

4.- Associates

Gestión de Recursos Eólicos Riojanos, S.L. - 16 % 16 % - - -

Iniciativas Bioenergéticas, S.L. - 20 % 20 % - - -

Associates

Indra Mexico

Indra Isolux México SA de CV 50 % - 50 % (54) 156 (9)

Visión Inteligente Aplicada S.A de C.V 50 % - 50 % (129) 4.203 (40)

EFI Túneles Necaxa SA de CV 10 % - 10 % 249 644 24

This appendix forms an integral part of notes 1 and 5 to the consolidated annual accounts, in conjunction with which it should be read..



Financial information on Group companies at 31 December 2014(Anexo I)

6

InterestEquity

Totaloperating

profi t/(loss)



1.- Parent

Indra Sistemas 928.592 2.080.024 (194.659)

2.- Subsidiaries

Indra Emac, S.A. 100 % - 100 % 2.687 14.208 1.765

Indra Sistemas de Seguridad, S.A. 100 % - 100 % 7.778 13.419 1.072

Indra Sistemas de Comunicaciones Seguras, S.L. - 100 % 100 % 8.917 3.348 1.095

Inmize Capital, S.L. 80 % - 80 % 1.542 - (6)

Inmize Sistemas, S.L. - 50 % 50 % 7.736 594 70

Indra Software Labs, S.L. 100 % - 100 % 39.584 166.800 11.368

Teknatrans Consultores, S.L. 100 % - 100 % 581 496 102

BPO Group 100 % - 100 % 23.053 143.439 3.770

Consultancy Group 100 % - 100 % 21.925 44.623 (8.946)

Advanced Printing and Finishing Services Group 100 % - 100 % 55.470 75.684 5.364

Prointec, S.A. Group 100 % - 100 % 25.718 50.578 (5.954)

Indra SI, S.A. 83 % 17 % 100 % 4.465 54.936 1.574

Politec Argentina 95 % 5 % 100 % 88 - 52

Azertia Tecnología de la Información Argentina S.A. 100 % 0 % 100 % (3.989) 3.376 (2.610)

Computación Ceicom 100 % - 100 % 3.042 6.496 96

Indra Company Brasil, Ltda. 100 % 100 % (11.822) 20.786 5.960

Indra Brasil SA 92 % 8 % 100 % 117.885 266.997 (52.994)

Search Informática Ltda. 51 % - 51 % 301 4.164 (701)

Ultracom-Consultoría em Tecnología da InformaÇao Ltda. 100 % - 100 % (322) 2.013 (200)

Indra Tecnología Brasil LTDA 100 % - 100 % (47) 2.743 (1.029)

Indra Colombia LTDA. 100 % - 100 % 10.624 46.660 359




6

InterestEquity

Totaloperating

income/(loss)



Indra Sistemas Chile S.A. 100 % - 100 % 1.774 41.080 (3.424)

Soluziona C&S Holding S.A. - 100 % 100 % 1.361 - 77

Soluziona S.A. Guatemala 100 % - 100 % 121 - (2)

Indra Sistemas México, S.A. de C.V. 100 % - 100 % 18.063 119.338 1.736

Azertia Tecnología de la Información México S.A. de C.V. 100 % - 100 % 12.483 16.198 116

Soluziona México S.A. de C.V. 100 % - 100 % (4.127) 14.812 556

Indra Panama, S.A. 100 % - 100 % 2.775 14.547 (919)

Indra Company Perú SAC 100 % - 100 % 1.700 3.377 (135)

Indra Perú, S.A. 100 % - 100 % 15.824 38.734 1.208

Soluciones y Servicios Indra Company Uruguay S.A. 100 % - 100 % 1.427 4.238 115

Indra USA, Inc 100 % - 100 % 4.932 15.861 593

Indra Systems, Inc 100 % - 100 % (1.104) 1.855 (1.784)

Indra USA IT Services 100 % - 100 % 2.386 194 (216)

Azertia Tecnología de la Información Venezuela S.A. 100 % - 100 % 50 229 50

Azertia Gestión de Centros Venezuela, S.A. 100 % - 100 % (340) 5 (53)

Soluziona SP, C.A. Venezuela 100 % - 100 % 2.433 5.557 119

Indra Italia Spa 100 % - 100 % 11.359 64.121 (167)

Indra Czech Republic s.r.o. 100 % - 100 % 4.352 6.272 409

Indra Eslovakia, a.s. 100 % - 100 % 661 1.950 1

Indra France Sas 100 % - 100 % (647) 62 (521)

Indra Hungary K.F.T. 100 % - 100 % (240) - (106)

Indra Sisteme S.R.L. (Moldavia) 100 % - 100 % 429 894 217

Indra Polska Sp.z.o.o 100 % - 100 % 73 224 (583)

Indra Sistemas Portugal, S.A. 100 % - 100 % 7.094 23.987 475




6

InterestEquity

Totaloperating

income/(loss)



Electrica Soluziona S.A. (Romania) 51 % - 51 % 2.142 2.695 543

Indra Kazakhstan Engineering Llp 51 % - 51 % 710 7.057 (212)

Indra Turkey 100 % - 100 % 724 4.084 (342)

Indra Beijing Information Technology Systems Ltd. (China) 100 % - 100 % 2.008 3.557 303

Indra Radar Technology (Tianjin) Co., Ltd. 70 % - 70 % (127) - (52)

Indra Philippines INC 50 % - 50 % 12.681 31.516 2.281

Indra Technology Solutions Malaysia Sdn Bhd. 70 % - 70 % 226 2.378 (588)

Indra Indonesia 100 % - 100 % (1.513) 132 (1.035)

Indra Sistemas India Private Limited 100 % - 100 % 4.153 815 (1.721)

Indra Bahrain Consultancy SPC 100 % - 100 % 2.363 14.177 (1.916)

Indra Arabia LLC CO 95 % 5 % 100 % 13.265 100.334 13.155

Indra Sistemas Magreb S.A.R.L. 100 % - 100 % 597 1.749 102

Indra Limited (Kenya) 100 % - 100 % 2.931 4.033 323

Soluziona Professional services (private) Limited (Zimbabwe)

70 % - 70 % - - -

Indra Technology South Africa 62 % - 62 % (1.226) 37 (1018)

Indra Australia Pty Limited 100 % - 100 % 6.071 31.228 496

3.- Joint ventures

I-3 Televisión S.L. 50 % - 50 % - - -

IRB Riesgo Operacional S.L. 33 % - 33 % - - -

IESSA (Brazil) 50 % - 50 % - - -




6

InterestEquity

Totaloperating

income/(loss)



4.- Associates

Saes Capital, S.A. 49 % - 49 % - - -

Eurofi ghter Simulation System GmbH 26 % - 26 % - - -

Euromids SAS 25 % - 25 % - - -

A4 Essor SAS 21 % - 21 % - - -

Tower Air traffi c, S.L. 50 % - 50 % - - -

Indra Sistemas de Tesorería, S.A. 33 % - 33 % - - -

Green Border OOD 50 % - 50 % - - -

Sociedad Catalana per a la mobilitat, S.A. 25 % - 25 % - - -

Indra Mexico

Indra Isolux México SA de CV 50 % - 50 % - - -

Visión Inteligente Aplicada S.A de C.V 50 % - 50 % - - -

EFI Túneles Necaxa SA de CV 10 % - 10 % - - -

BPO Group composition

2.- Subsidiaries

Indra BPO, S.L. 16.318 24.865 3.654

OUAKHA Services, Sarl AU (Morocco) 100 % - 100 % (271) - (9)

Indra BPO Servicios , S.L. 100 % - 100 % 48.883 113.954 6.352

Central de Apoyos y Medios Auxiliares, S.A.U. (CAYMASA) 100 % - 100 % 1.819 10.208 (1.887)

IFOS (Argentina) 80 % 20 % 100 % (359) 12 (128)

Indra II BPO Portugal 100 % - 100 % (384) 4.771 (636)

4.- Associates

Trias Beltran, S.L. 40 % - 40 % - - -




6

InterestEquity

Totaloperating

profi t/(loss)

Individualprofi t/loss after


Consultancy Group composition

2.- Subsidiaries

Indra Business Consulting - - 35.512 35.875 (5.958)

Europraxis ALG Consulting, Ltd. (UK) 100 % - 100 % 75 (46) (70)

Europraxis ALG Consulting, Ltda. (Brazil) 99,99 % 0,01 % 100 % (5.981) 2.026 (1.640)

Advanced Logistics Group, S.A. 100 % - 100 % (2.696) 9.016 (2.856)

Indra Business Consulting ALG Mexico 99,99 % 0,01 % 100 % 216 3.155 (247)

Advanced Logistics Group Andina - 100 % 100 % 384 200 (142)

Advanced Logistics Group Venezuela - 90 % 90 % 313 - 37

Europraxis Alg Maroc 67 % 33 % 100 % (838) 49 (430)

Advanced Printing and Finishing Services Group

2.- Subsidiaries

Advanced Printing and Finishing Services Group 47.200 - -

AC-B air Traffi c Control & Business Systems GmbH (Alemania)

100 % - 100 % 1.479 1.732 211

Avitech AG 100 % - 100 % 5.321 15.646 1.029

Indra Navia AS 100 % - 100 % 19.323 57.113 4.256




6

InterestEquity

Totaloperating

profi t/(loss)

Individualprofi t/loss after


Prointec Group composition

2.- Subsidiaries

Prointec, S.A. Group 27.948 50.855 (6.567)

Consis Proiect SRL (Romania) 100 % - 100 % 1.517 902 (155)

Ingenieria de Proyectos de Infraestructuras Mexicanas 98 % 2 % 100 % 5.340 24.360 698

Prointec Romaría S.R.L. (Romania) 100 % - 100 % (63) 470 (135)

Prointec Engenharia, Ltda. 100 % - 100 % 303 304 82

Prointec Panama 75,00 % - 75 % (108) - (38)

Unmanned Aircraft Technologies, S.A. 51 % - 51 % 5 - 656

Prointec USA 100 % - 100 % 575 1.012 185

Prointec India 100 % - 100 % - - -

4.- Associates

Idetegolf, S.A. 33 % - 33 % - - -

Gestión de Recursos Eólicos Riojanos, S.L. - 16 % 16 % - - -

Iniciativas Bioenergéticas, S.L. - 20 % 20 % - - -




Details of activities jointly operated with third parties at 31 December 2015.(Appendix II)

6

Company Direct interest

Of Indra SI

Indra SI SA-Retesar SA UTE 80,00%

Indra SI SA-DCM Solution SA UTE 90,00%

Deloitte & Co.SRL-Indra SI SA UTE 46,38%

Metronec-Siemens-Indra UTE 33,33%

Of Indra Peru

CONSORCIO PROCOM 49,00%

CONSORCIO INGORMATICA EL CORTE INGLES

50,00%

CONSORCIO GMD 50,00%

CONSORCIO NSC 90,00%

CONSORCIO MINCETUR 98,00%

CONSORCIO FABRICA DE SOFTWARE

50,00%

CONSORCIO REAPRO 85,00%

CONSORCIO SOLUCIONES DIGITALES

25,00%

CONSORCIOO INDRA PETROLEO 95,00%

CONSORCIO PROCOM AGUA 49,00%

CONSORCIO MINEDU 95,00%

CONSORCIO GESTION INFORMACION

44,00%

Of Spanish Group companies

EBB PUBLICACIONES TECNICAS EXP.20046300

45%

ETRALUX SA SICE INDRA (UTE PUCELA)

20%

FCC INDUSTRIAL E INFRAESTRUCTURAS ENERGÉTICAS, SAU-

30%


INDRA SISTEMAS, S.A. - CONSORCIO REGIONAL DE TRANSPORTE

95%

INDRA SISTEMAS, S.A. - ELEKTRA, S.A., U.T.E.

51%

INDRA SISTEMAS, S.A. - INDRA SIST. DE SEGURIDAD, U.T.E.

50%

INDRA SISTEMAS, SA-AYESA ADVANCED TECHNOLOGIES, SA, U.T.E

65%

INDRA SISTEMAS, SA-INDRA SISTEMAS DE SEGURIDAD, SA, U.T.E.

50%

PEREZ MORENO S.AU. COMSA S.A. INDRA SISTEMAS S.A.

20%

PRICEWATERHOUSECOOPERS ASESORES DE NEGOCIOS, S.L. - INDRA

39%

SELEX ES S.P.A. - INDRA SISTEMAS, S.A.CLOSEYE L.1, U.T.E

40%

SISTEMAS Y MONTAJES INDUSTRIALES, S.A.-INDRA SISTEMAS, S.A., U.T.E.

40%

UTE AEAT 10/2011 27%

UTE COPSA - INDRA 50%

UTE VCR 8X8 38%

UTE 2 INDRA - UNITRONICS 50%

UTE 3 INDRA - UNITRONICS 85%

UTE 3 INDRA - UNITRONICS -"DEIF 2"

85%

UTE ABI CORREDOR NORTE 4%

UTE ABI EXTREMADURA - CORREDOR OESTE

15%

UTE AC-14 ACCESOS A CORUÑA 90%

UTE ACCENTURE - INDRA 35%

UTE ACCENTURE, SL-CORITEL-ACCENTURE O.S., SAU-INDRA

25%


UTE ACCESOS CGT MADRID 50%

UTE ACCESOS CGT MADRID II 50%

UTE ACCESOS LEVANTE 50%

UTE ACCESOS NOROESTE 30%

UTE ADIS 12%

UTE AEAT 03/07 27%

UTE AEAT 42/10 35%

UTE AEAT 68/06 35%

UTE AIMEN 40%

UTE ALTA CAPACIDAD 20%

UTE ALTA CAPACIDAD G.C. 60%

UTE ALTIA - ILUS-INDRA-R. CABLE 25%

UTE AMTEGA 110/2015 L1 71%

UTE ARTXANDA - ETORKISUNA - 30%

UTE AV 2/2015 60%

UTE AV 20/2014 35%

UTE AVIONICA 50%

UTE AVIONICA DE HELICOPTEROS 50%

UTE BILBOMATICA, S.A. - INDRA SISTEMAS, S.A.

45%

UTE CC MOVIMA 80%

UTE CEIDECOM 60%

UTE CETRADA 33%

UTE CGSI ASTURIAS LOTE 3 70%

UTE CGSI ASTURIAS LOTE 4 60%

UTE CIC-TF 50%

UTE CONTROL ACCESOS DONOSTIA 50%




6Company Direct interest

UTE CONTROL MOGAN 33%

UTE CONTROL POLOPOS 50%

UTE DGT NOROESTE 2014 65%

UTE DI CUENCA 50%

UTE EBB-PUBLICACIONES TECNICAS 086300

20%

UTE EBB-PUBLICACIONES TECNICAS-GEL

50%

UTE ELECTRONIC TRAFIC - INDRA SISTEMAS

50%

UTE EMTE-INDRA 50%

UTE ENTELGY-INDRA 14%

UTE ETRA - INDRA 50%

UTE ETRALUX - INDRA 40%

UTE GALILEO - INDRA 21%

UTE GISS 11 35%

UTE GISS 7 30%

UTE GISS 7201/10 LOTE 6 34%



UTE GISS 7201/14G L.2 39%

UTE GISS 7201/14G LOTE 1 57%

UTE IBERMATICA-INDRA-BILBOMATICA

22%

UTE IECISA - INDRA 42%

UTE IECISA - INDRA (ALFIL III) 42%

UTE IECISA - INDRA (COMUNYCATE) 45%

UTE IECISA - INDRA (SEFCAN) 33%

UTE IECISA-INDRA SUM. SOP. M. INTERIOR

50%


UTE IECISA-INDRA-ZENSANIA-EMTE

38%

UTE IMD INDRA.TELEF 70%

UTE IMPLAMTBAT 50%

UTE INDICADORES AMBIENTALES DELTA DEL EBRO

33%

UTE INDRA - AGFA 61%

UTE INDRA - ALBATROS 60%

UTE INDRA - ALFATEC 70%

UTE INDRA - ALTIA (IMSERSO) 59%

UTE INDRA - ALVENTO 50%

UTE INDRA - AMBAR 85%

UTE INDRA - ARTE 80%

UTE INDRA - AVANZIT 50%

UTE INDRA - CESSER 80%

UTE INDRA - E y M INSTALACIONES 50%

UTE INDRA - ETRA 51%

UTE INDRA - EVERIS - ISOFT - TELVENT INTERACT.

34%

UTE INDRA - HP 65%

UTE INDRA - ITALTEL 50%

UTE INDRA - ITP (1) 50%

UTE INDRA - ITP (2) 50%

UTE INDRA - LKS 65%

UTE INDRA - NETINEX 50%

UTE INDRA - OTIPE 50%

UTE INDRA - OTIS 50%

UTE INDRA - SAINCO 64%


UTE INDRA - SALLEN 70%

UTE INDRA - TECNOCOM 50%

UTE INDRA - TES 50%

UTE INDRA - TRADIA TELECOM 50%

UTE INDRA AM 26/2011 50%

UTE INDRA SISTEMAS, S.A. - UNISYS, S.L.U.

70%

UTE INDRA SISTEMAS, S.A. - EUROCOPTER ESPAÑA, SA

63%

UTE INDRA SISTEMAS, S.A. - SIA, S.p.A.

50%

UTE INDRA SISTEMAS, S.A. - TELVENT TRAF.Y TRANS.

50%

UTE INDRA SISTEMAS, SA-AVANTIC ESTUDIO DE INGENIEROS, SL, UTE

90%

UTE INDRA -TELEFÓNICA HDA 78%

UTE INDRA-ACISA 50%

UTE INDRA-ALTIA (AMTEGA) 50%

UTE INDRA-ALTIA (XUNTA DE GALICIA)

50%

UTE INDRA-ALTIA-R. CABLE 33%

UTE INDRA-ARANZADI 50%

UTE INDRA-BMB 51%

UTE INDRA-COMPAÑÍA VASCA DE INGENIERIA

60%

UTE INDRA-CONNECTIS 74%

UTE INDRA-EADS CASA 50%

UTE INDRA-ETRA 55%

UTE INDRA-FIBRAL 70%

UTE INDRA-IECISA (ALFIL) 42%

UTE INDRA-IECISA M-14-059 75%





UTE INDRA-INICIATIVAS AMBIENTALES

50%

UTE INDRA-KONECTA 87%

UTE INDRA-MNEMO 35%

UTE INDRA-MNEMO-SOPRA 66%

UTE INDRA-OESIA 87%

UTE INDRA-PUENTES Y CALZADAS INFRAESTRUCTURAS

80%

UTE INDRA-PWC (ADIF) 60%

UTE INDRA-SADIEL 043/2012 80%

UTE INDRA-SOLUCIONS-TECN. D'AVANTGUARDA

60%

UTE INDRA-TECDOA 50%

UTE INDRA-TELEFONICA 50%

UTE INDRA-TELEFONICA S.I.C. 50%

UTE INDRA-TELVENT 60%

UTE INDRA-UNISYS 60%

UTE INDTEC 137/09 50%

UTE INSS - 392/CP-40/05 15%

UTE INSS 60/VC-28/10 15%

UTE INSTALACIONES MADRID ESTE 8%

UTE INSTALACIONES SEGUNDO CINTURON

25%

UTE INSTALACIONES TUNELES MUROS-DUEÑAS

50%

UTE INSTALACIONES VSM/VSM INSTALAZIOAK

25%

UTE IRST F-110 50%

UTE ISM LOTE 1 60%

UTE ISM LOTE 2 40%

UTE ITGIPUZKOA 80%


UTE ITS MADRID 15 60%

UTE JAÉN 52%

UTE JOCS DEL MEDITERRANI 25%

UTE LINEA 9 MANTENIMIENTO TRAMO IV

64%

UTE LINEA 9 TRAMO I Y II 64%

UTE MANTENIMIENTO DNIe 50%

UTE MANTENIMIENTO LEVANTE 50%

UTE MANTENIMIENTO RENFE LOTE 1

50%

UTE MANTENIMIENTO RENFE LOTE 2

50%

UTE MANTENIMIENTO RONDES 2012

30%

UTE MANTENIMIENTO SEMAFORICO TORREJON DE ARDOZ

50%

UTE MONTEFUERTE 25%

UTE ORION 50%

UTE OSAKIDETZA 34%

UTE OSAKIDETZA AM 34%

UTE OVYCYL INDRA GRUPO NORTE II

66%

UTE PEREZ MORENO SAU - COMSA SA - INDRA SISTEMAS

10%

UTE PIV2011 (PROINTEC-GMV SISTEMAS-EORIAN SYSTEMS-ETRALUX

51%

UTE PROTEC 110 66%

UTE PWC - INDRA (EOI) 70%

UTE RED DE TRANSPORTE 50%

UTE RENFE BARIK 60%

UTE S.A.I. DEL SEGURA 40%


UTE SAIH C.H.J. 25%

UTE SAIH SUR 35%

UTE SAN MAMES FASE II 27%

UTE SEGURIDAD PEAJES 50%

UTE SIEMENS - INDRA 20%

UTE SISTEMAS METRO MALAGA 50%

UTE SIVE II INDRA-AMPER 50%

UTE SIVE INDRA - AMPER 50%

UTE SOFTWARE AG - INDRA (INSS) 25%

UTE SOPORTE LOTE 2 50%

UTE SPEE 2/10 30%

UTE TECNOBIT, S.L.U. - INDRA SISTEMAS, S.A.

42%

UTE TELEBILLETICA 50%

UTE TELECO 70%

UTE TELEFÓNICA SOL.DE INF. Y COM. DE ESPAÑA, SAU -

50%

UTE TELVENT - INDRA - ATOS 33%

UTE TES - INDRA 50%

UTE TGSS 7201/13G 49%

UTE TRANSITIA - PABISA - INDRA 23%

UTE TSOL-INDRA IV SITEL 35%

UTE TUNELES ANTEQUERA 34%

UTE TUNELES DE GUADARRAMA 34%

UTE TUNELES DE PAJARES 35%

UTE ZAINDU HIRU 13%

UTE ZONA NORTE 10%





UTE PROINTEC-TALHER-GEOCISA-DRAGADOS

7%

PROINTEC-GPY ARQUITECTOS, S.L.U.-CIVILPORT INGENIEROS, S.L.P.-ENRIQUE AMIGÓ, S.L. (INTERCAMBIADOR CANDELARIA)

15,00%

UTE AUDITORIA SEGURIDAD VIARIA AUTOVIA A-22

25,00%

UTE ESMOVILIDAD-INTEF-PROINTEC-LCA

25,00%

UTE METRO QUITO (AYESA-PROINTEC-CAMINOSGA)

30,00%

UTE AUDING-CENSA-INTECSA INARSA-PROINTEC (UTE PORT BARCELONA)

33,00%

PROINTEC, S.A.-INTEMAC, S.A.-PAYMA COTAS, S.A.U., UTE (UTE AEROPUERTO VALENCIA)

33,30%

UTE CEMOSA-TYPSA-PROINTEC 33,00%


UTE ESMOVILIDAD AYESA-PROINTEC

33,33%

UTE INOCSA-PROSER-PROINTEC 33,34%


UTE PROINTEC-TYPSA-CEMOSA ALICANTE

34,00%

TRN-GETINSA-PROINTEC (UTE AUDITORÍA FP 11)

34,00%

UTE CPS-PROINTEC-EUROCONSULT (UTE AUDITORIA A-66

34,00%

ALATEC-PROINTEC-TCA. Y CCION. DE CATALUÑA

35,00%

GEOPRIN-ICYFSA 37,00%

UTE PROINTEC-ESTUDIO 7 GUIADOR

40,00%

UTE ZORTNOZA (EUSKONTRO-PROINTEC-INGEPLAN

40,00%

UTE METRO DONOSTI (ACCIONA-PROINTEC-ASMATU)

40,00%


UTE PROINTEC-AQUAGEST-GRS (CENSO TRIBUTARIO BURGOS

40,00%

UTE TRN-MECSA 50,00%

UTE INCOSA-PROINTEC III (AUDITORIO DE BURGOS)

50,00%

PROINTEC-INIMA Mº AMBTE S.EUROPEOS (LINDE NORTE)

50,00%

UTE INDRA B.M.B-PROINTEC 50,00%

UTE EIPSA-PROINTEC-EUSKONTROL (UTE VIADUCTO)

50,00%

PROINTEC-INYSUR (BAJA CENSAL) 50,00%

PROINTEC-ESTUDIO 7 VARIANTE BAÑADEROS

50,00%

EPTISA SERVICIOS DE INGENIERIA, S.L. - PROINTEC, S.A., UTE

50,00%

UTE PROINTEC-G.O.C. 50,00%

PyG ESTRUCTURAS AMBIENTALES, S.L. – PROINTEC, S.A. (U.T.E. LODOS)

50,00%

UTE PROINTEC-ESTUDIO 7 CALDERETA

50,00%

UTE PAYMA COTAS S.A.U-PRO 50,00%

PROINTEC-MECSA (UTE ZAL ALMERIA)

50,00%

INSERCO-PROINTEC, UTE EDAR GUADALHORCE

50,00%

PROINTEC-PROINTEC EXTREMADURA II

50,00%

AGUA Y ESTRUCTURAS, S.A. - PROINTEC (UTE AYEPRO)

50,00%

PROINTEC - PROINTEC EXTREMADURA, S.L. III

50,00%

UTE ARQUING-PROINTEC 577 50,00%

UTE PROINTEC-GROMA INGENIERIA 50,00%

UTE GOC-PROINTEC 50,00%

UTE AGENCIA EFE (INCOSA-PROINTEC)

50,00%

UTE INOCSA-PROINTEC (TUNEL O CAÑIZO)

50,00%


UTE PROINTEC-VIGUECONS ESTEVEZ

GEOPRIN-EUROCONSULT ANDALUCIA-EUROCONSULT SA

50,00%

50,00%

GEOPRIN-ICYF, S.A. 50,00%


50,00%

MECSA-OVE ARUP 50,00%

MECSA-SAN ANDRES 50,00%

MECSA-ESTUDIOS Y PROYECTOS NIP (NIPSA)

50,00%

UTE III PLAN CARRETERAS CLM 50,00%

UTE CIPSA CONSULPAL SA - PROINTEC SA

50,00%

TRIBUGEST-PROINTEC III 50,00%

UTE PROINTEC-MEDIO AMBIENTE Y PATRIMONIO SL (MAP)

50,00%

UTE PROINTEC-EYSER 50,00%

UTE PROINTEC-PRORAIL 50,00%

PROINTEC-AGROVIAL CONSULTORES (BALSA-CALDERETA)

50,00%

UTE PROINTEC-BPG 50,00%

UTE GRUPO 5-PROINTEC 50,00%

UTE PROINTEC-EUROESTUDIOS 50,00%

UTE PROINTEC-INTEMAC (AEROP.MURCIA)

50,00%

UTE PROINTEC-BLOM 50,00%

PROINTEC-INFRAESTRUCTURA Y ECOLOGIA, S.L.

50,00%

PROINTEC-AUDITORIAS E INGENIERIAS.A. (MONTAJE VIA)

50,00%

PROINTEC-BB&J CONSULT S.A. (UTE MOVILIDAD BARCELONA)

50,00%

UTE PROINTEC-GIUR LP-2 50,00%





UTE ABASTECIMIENTO ORENSE (PROINTEC-INSERCO)

50,00%

UTE PUEBLA DE OBANDO (PROINTEC-PROINTEC EXTREMADURA)

50,00%


UTE PROINTEC-BPG UTE PTL2016 50,00%

UTE PROINTEC-AIRIA AEROPUERTO DE BARCELONA 2012

50,00%

UTE PROINTEC-PROINTEC EXTREMADURA SEGURIDAD VIAL 2013-2014

50,00%

UTE PROINTEC-NOLTER INGENIERIA (ABASTECIMIENTO LA RIOJA)

50,00%

UTE E3 SOLINTEG SL Y PROINTEC S.A. (UTE PROTOCOL PROJECTES)

50,00%

UTE INGENIERIA CIVIL INTERNACIONAL S.A.- PROINTEC S.A. (UTE ALMUDEVAR)

50,00%


50,00%

AMINSA-PROINTEC (UTE TRANVIA A LA MAR)

50,00%

UTE PROINTEC-ACCIONA-ASMATU (UTE ZIZURKIL)

50,00%

UTE PROINTEC-EUSKONTROL II (UTE MANUALES)

60,00%

UTE PROINTEC-PYG MARJAL SUR 60,00%

UTE PROINTEC-UG 21 (ALJARAFE II) 60,00%

PROINTEC-UG 21 (TOCON-ILLORA) 60,00%

UTE PROINTEC-UG 21 (COIN-ALHAURIN)

60,00%

UTE PROINTEC-E3 SOLINTEG (UTE COMITÉ D'OBRES)

60,00%

MECSA-ESTUDIO TORRE ELORDUY 70,00%


PROINTEC-MECSA&ARENAS ASOCIADOS (UTE RED ARTERIAL CARTAGENA

70,00%

PROINTEC-ALAUDA 70,00%

PROINTEC - INGENIA SERVICIOS GLOBALES DE INGENIERIA, S.L. (UTE TRAMO 7 PLAYA DEL INGLES)

70,00%

PROINTEC-INGEPLAN (LINEA 3) 72,50%

PROINTEC-INGEPLAN (BERGARA) 72,50%

UTE PROINTEC-HIDROVIAL INGENIEROS

75,00%

UTE MECSA-ACORDE (UTE PLAN FORMACION)

75,00%

PROINTEC-CIVILPORT-ENRIQUE AMIGO (UTE TRAMO 2 TREN DEL SUR)

80,00%

PROINTEC - AIRTHINK, S.L. - UTE PLANES DIRECTORES

80,00%

TUNELES ANTEQUERA 16,34%

TUNELES GUADARRAMA 16,34%

TUNELES PAJARES 16,34%

UTE CCTV METRO 50,00%

UTE DI BADAJOZ 50,00%

UTE DI CUENCA 50,00%

UTE INDRA - ALSTOM 55,00%

UTE INDRA SISTEMAS DE SEG.-MONT.ELECTRISUR

80,00%

UTE INDRA SISTEMAS-ALSTOM-INDRA SIST.SEGURIDAD

55,00%

UTE PROSELEC-INDRA SISTEMS DE SEGURIDAD

50,00%

UTE SEGURIDAD PEAJES 50,00%

UTE AV 2/2015 40,00%


UTE INDRA BPO - T. SOLUCIONES 69,42%

UTE LANBIDE 1,00%

UTE INDRA PROUR 50,00%

AIE CRISTAL HIPOTECARIO 2009 20,00%

AIE FORMALIZACIÓN ALCALA 265 20,00%

AIE ENRIQUE JARDIEL PONCELA 6 25,00%

UTE ALG - FULCRUM 50,00%

UTE ALG - M & A 70,00%

UTE ALG-CINESI 50,00%

CONSORCIO ALG-ANDINA 90,00%

UTE CAYMASA-MAILING 50,00%

UTE SADIEL-CAYMASA 50,00%

UTE AYESA-CAYMASA II 50,00%




Details of activities jointly operated with third parties at 31 December 2014.(Anexo II)

6


Of Indra SI

Indra SI SA-Retesar SA UTE 80,00%

Indra SI SA-DCM Solution SA UTE 90,00%

Deloitte & Co.SRL-Indra SI SA UTE 46,38%

Metronec-Siemens-Indra UTE 33,33%

Of Indra Peru

CONSORCIO PROCOM 49,00%

CONSORCIO CEI 50,00%

CONSORCIO GMD 50,00%

CONSORCIO PETROLEOS 95,00%

CONSORCIO NSC 90,00%

CONSORCIO MINCETUR 98,00%

CONSORCIO FABRICA 50,00%

CONSORCIO REAPRO 85,00%

Of Spanish Group companies

UTE ABI CORREDOR NORTE 4,00%

UTE PROINTEC-TALHER-GEOCISA-DRAGADOS

7,00%

UTE INSTALACIONES MADRID ESTE 7,50%

UTE ZONA NORTE 10,00%

UTE PEREZ MORENO SAU - COMSA SA - INDRA SISTEMAS

10,00%

UTE ADIS 12,00%

UTE ADIS 12,00%

UTE INDRA SISTEMAS-INDRA SISTEMAS DE SEGURIDAD

15,00%


PROINTEC-GPY ARQUITECTOS, S.L.U.-CIVILPORT INGENIEROS, S.L.P.-ENRIQUE AMIGÓ, S.L. (INTERCAMBIADOR CANDELARIA)

15,00%


UTE INDRA SISTEMAS - ALSTOM - INDRA SISTEMAS DE SEGURIDAD

18,50%

PEREZ MORENO S.AU. COMSA S.A. INDRA SISTEMAS S.A.

20,00%

UTE ALTA CAPACIDAD 20,00%

UTE SIEMENS - INDRA 20,00%

AIE FORMALIZACIÓN ALCALA 265 20,00%

AIE CRISTAL HIPOTECARIO 2009 20,00%

UTE TRANSITIA - PABISA - INDRA 22,50%

UTE ACCENTURE, SL-CORITEL-ACCENTURE O.S., SAU-INDRA

25,00%

UTE ALTIA - ILUS-INDRA-R. CABLE 25,00%

UTE INSTALACIONES SEGUNDO CINTURON

25,00%

UTE SAIH C.H.J. 25,00%

UTE INSTALACIONES VSM/VSM INSTALAZIOAK

25,00%

AIE ENRIQUE JARDIEL PONCELA, 6 25,00%

UTE AUDITORIA SEGURIDAD VIARIA AUTOVIA A-22

25,00%

UTE PROINTEC-AEPO-EUROESTUDIOS-INSERCO

25,00%

UTE AEAT 03/07 26,54%

UTE SAN MAMES FASE II 26,66%

UTE GISS 7201/10 G LOTE 10 28,00%

UTE GISS 7 30,00%

UTE SPEE 2/10 30,00%


UTE MANTENIMIENTO RONDES 2012

30,00%

UTE ARTXANDA - ETORKISUNA - 30,00%

UTE METRO QUITO (AYESA-PROINTEC-CAMINOSGA)

30,00%

UTE TELVENT - INDRA - ATOS 33,00%

UTE AUDING-CENSA-INTECSA INARSA-PROINTEC (UTE PORT BARCELONA)

33,00%


PROINTEC, S.A.-INTEMAC, S.A.-PAYMA COTAS, S.A.U., UTE (UTE AEROPUERTO VALENCIA)

33,30%

UTE INDICADORES AMBIENTALES DELTA DEL EBRO

33,33%

UTE ESMOVILIDAD AYESA-PROINTEC

33,33%

UTE CONTROL MOGAN 33,34%

UTE INOCSA-PROSER-PROINTEC 33,34%

UTE GISS 7201/10 LOTE 6 34,00%

UTE OSAKIDETZA AM 34,00%

UTE INDRA - EVERIS - ISOFT - TELVENT INTERACT.

34,00%

UTE PROINTEC-INTEVIA-GETNISA 34,00%

UTE PROINTEC-TYPSA-CEMOSA ALICANTE

34,00%


UTE SAIH SUR 35,00%

UTE GISS 11 35,00%

UTE ACCENTURE - INDRA 35,00%

UTE INDRA-MNEMO 35,00%

UTE MANTENIMIENTO SAI-SEGURA 35,00%




6


ALATEC-PROINTEC-TCA. Y CCION. DE CATALUÑA

35,00%

UTE AEAT 68/06 35,18%

UTE AEAT 42/10 35,18%

UTE GISS 7201/10 LOTE 8 35,50%

UTE INDRA SISTEMAS - ALSTOM - INDRA SISTEMAS DE SEGURIDAD

37,00%


GEOPRIN-ICYFSA 37,00%

UTE IECISA-INDRA-ZENSANIA-EMTE

37,50%

UTE TUNELES DE PAJARES 39,00%

UTE AIMEN 40,00%

UTE ISM LOTE 2 40,00%

UTE TELEFÓNICA - INDRA - FUCODA

40,00%

UTE S.A.I. DEL SEGURA 40,00%

UTE VALLADOLID 40,00%

UTE SELEX ES -INDRA SISTEMAS 40,00%

UTE DBS - INDRA - IASOFT 40,00%

UTE ZORTNOZA (EUSKONTRO-PROINTEC-INGEPLAN

40,00%

UTE PROINTEC-AQUAGEST-GRS (CENSO TRIBUTARIO BURGOS

40,00%

UTE METRO DONOSTI (ACCIONA-PROINTEC-ASMATU)

40,00%

UTE PROINTEC-ESTUDIO 7 GUIADOR

40,00%

UTE FOA-MECSA GIJON 40,00%

UTE IECISA - INDRA 42,00%

UTE IECISA - INDRA . 42,00%


UTE INDRA-ACCENTURE-GESEIN 45,00%

UTE BILBOMATICA, S.A. - INDRA SISTEMAS, S.A.

45,00%

UTE JOCS DEL MEDITERRANI 49,00%

UTE GISS 7201/10 LOTE 9 49,00%

UTE TGSS 7201/13G 49,00%

AP7 AUMAR NORTE 49,00%

UTE CIC-TF 50,00%

UTE 1 INDRA - UNITRONICS 50,00%


"UTE PROSELEC - INDRA SISTEMAS DE SEGURIDAD

50,00%

UTE INDRA - ITALTEL 50,00%

UTE CONTROL ACCESOS DONOSTIA 50,00%

UTE COPSA - INDRA 50,00%

UTE 2 INDRA - UNITRONICS 1 50,00%

UTE INDRA SISTEMAS, S.A. - TELVENT TRAF.Y TRANS.

50,00%

UTE 1 INDRA - UNITRONICS "DGSC1"

50,00%

UTE ORION 50,00%

UTE AVIONICA 50,00%

UTE INDRA - AVANZIT 50,00%

UTE INIB EJE 50,00%


UTE INDRA - NETINEX 50,00%

UTE INDTEC 137/09 50,00%

UTE INDRA - ITP (1) 50,00%

UTE INDRA - ITP (2) 50,00%


UTE SISTEMAS METRO MALAGA 50,00%

UTE MANTENIMIENTO DNIe 50,00%

UTE IMPLAMTBAT 50,00%

UTE SOPORTE LOTE 2 50,00%

UTE ALG - CINESI (Plans Mobilitat) 50,00%

UTE EMTE-INDRA 50,00%

UTE INSTALACIONES TUNELES MUROS-DUEÑAS

50,00%

UTE INDRA-INICIATIVAS AMBIENTALES

50,00%

UTE MASTIN 50,00%

UTE AVIONICA DE HELICOPTEROS 50,00%

UTE INDRA SISTEMAS, S.A. - SIA, S.p.A.

50,00%

UTE INDRA-TELEFONICA 50,00%

UTE INDRA-TECDOA 50,00%

UTE INDRA-ALTIA 50,00%

UTE SIVE INDRA - AMPER 50,00%

UTE INDRA-TELEFONICA S.I.C. 50,00%

UTE ACCESOS LEVANTE 50,00%

UTE INDRA-EADS CASA 50,00%

UTE INDRA-ALTIA 50,00%

UTE INDRARANZADI 50,00%

UTE SIVE II INDRA-AMPER 50,00%

UTE ABC MALAGA 50,00%

UTE CONTROL POLOPOS 50,00%

UTE INDRA - TECNOCOM 50,00%




6


UTE ALG - FULCRUM 50,00%

UTE INDRA - ALVENTO 50,00%

UTE TELEFÓNICA SOL.DE INF. Y COM. DE ESPAÑA, SAU -

50,00%

UTE INOCSA-PROINTEC (TUNEL O CAÑIZO

50,00%

UTE PROINTEC-ACCIONA-ASMATU (UTE ZIZURKIL)

50,00%

UTE AGENCIA EFE (INCOSA-PROINTEC)

50,00%

UTE PROINTEC-BPG UTE PTL2016 50,00%

UTE PROINTEC-NOLTER INGENIERIA (ABASTECIMIENTO LA RIOJA)

50,00%



UTE PROINTEC-PAYMA COTAS 50,00%

UTE CIPSA CONSULPAL SA - PROINTEC SA

50,00%

UTE PROINTEC-PROINTEC EXTREMADURA SEGURIDAD VIAL 2013-2014

50,00%

UTE PROINTEC-PRORAIL50,00%

UTE PROINTEC-GIUR LP-2 50,00%

UTE PROINTEC-AIRIA AEROPUERTO DE BARCELONA 2012

50,00%

PROINTEC-AUDITORIAS E INGENIERIAS.A. (MONTAJE VIA)

50,00%

UTE ABASTECIMIENTO ORENSE (PROINTEC-INSERCO)

50,00%


50,00%


50,00%


PROINTEC-BB&J CONSULT S.A. (UTE MOVILIDAD BARCELONA)

50,00%

UTE TRN-MECSA 50,00%

EPTISA SERVICIOS DE INGENIERIA, S.L. - PROINTEC, S.A., UTE

50,00%

UTE ARQUING-PROINTEC 577 50,00%

UTE E3 SOLINTEG SL Y PROINTEC S.A. (UTE PROTOCOL PROJECTES)

50,00%

PROINTEC-INFRAESTRUCTURA Y ECOLOGIA, S.L.

50,00%

PROINTEC-INSTITUTO TECNICO DE MATERIALES Y CONSTRUCCIONES, S.A. (INTEMAC), UTE - UTE CE VALENCIA

50,00%

UTE PROINTEC-INTECSA-INARSA 50,00%

MECSA-OVE ARUP 50,00%

UTE EIPSA-PROINTEC-EUSKONTROL (UTE VIADUCTO)

50,00%

UTE PROINTEC-MEDIO AMBIENTE Y PATRIMONIO SL (MAP)

50,00%

PROINTEC-T.T.U. 50,00%

UTE PROINTEC-BLOM 50,00%

UTE INPROESA-MECSA 50,00%

PROINTEC-CASTELLANA DE INGENIERIA

50,00%

UTE INGENIERIA CIVIL INTERNACIONAL S.A.- PROINTEC S.A. (UTE ALMUDEVAR)

50,00%

PROINTEC-T.T.U. II 50,00%

INIMA-PROINTEC UTE 50,00%

PROINTEC-INIMA Mº AMBTE S.EUROPEOS (LINDE NORTE)

50,00%

GEOPRIN-EPSA 50,00%

AMINSA-PROINTEC (UTE TRANVIA A LA MAR)

50,00%


UTE PROINTEC-INSERCO (BOMBEO BREÑA II)

50,00%

UTE PROINTEC-IBERINSA 49,00%

PROINTEC-INSTITUTO TECNICO DE MATERIALES Y CONSTRUCCIONES, S.A. (INTEMAC), UTE - UTE AEROP. PALMA MALLORCA

49,00%

GESTION INTEGRAL DEL SUELO-PROINTEC

50,00%

UTE PROINTEC-EYSER 50,00%

PROINTEC-GALOP III 50,00%

PROINTEC-AGROVIAL CONSULTORES (BALSA-CALDERETA)

50,00%

UTE INCOSA-PROINTEC III (AUDITORIO DE BURGOS)

50,00%

PROINTEC-INYSUR (BAJA CENSAL) 50,00%

PROINTEC-PROINTEC EXTREMADURA-ARQUEVCHECK

50,00%

PROINTEC - PROINTEC EXTREMADURA, S.L. III

50,00%

MECSA-ESTUDIOS Y PROYECTOS NIP (NIPSA)

50,00%

TRIBUGEST-PROINTEC III 50,00%

UTE PROINTEC-BPG 50,00%

GEOPRIN-ICYF, S.A. 50,00%

GEOPRIN-EUROCONSULT ANDALUCIA-EUROCONSULT SA

50,00%

UTE GOC-PROINTEC 50,00%

UTE PROINTEC-G.O.C. 50,00%


50,00%

UTE PROINTEC-ESTUDIO 7 CALDERETA

50,00%

MECSA-SAN ANDRES 50,00%




6



AGUA Y ESTRUCTURAS, S.A. - PROINTEC (UTE AYEPRO)

50,00%

UTE PROINTEC-INTEMAC (AEROP.MURCIA)

50,00%

UTE PROINTEC-EUSKONTROL 50,00%

UTE PROINTEC-VIGUECONS ESTEVEZ

50,00%

UTE EUSKONTROL-EIPSA 50,00%

INSERCO-PROINTEC, UTE EDAR GUADALHORCE

50,00%

UTE PROINTEC-ALTOARAGONESA INGENIERIA CIVIL (UTE IMPACTO TERRITORIAL)

50,00%

UTE PIV2011 (PROINTEC-GMV SISTEMAS-EORIAN SYSTEMS-ETRALUX

50,58%

UTE INST. DESKARTA 51,00%

UTE INDRA - ETRA 51,00%

UTE JAÉN 52,12%

PROINTEC-EUROESTUDIOS, UTE 55,00%

UTE GISS 7201/14G LOTE 1 57,00%

UTE IMSERSO 59,00%

UTE INDRA EWS/STN ATLAS 60,00%

UTE CEIDECOM 60,00%

UTE TRÁFICO Y SEÑALIZACIÓN VALENCIA

60,00%

UTE ISM LOTE 1 60,00%

UTE INDRA-COMPAÑÍA VASCA DE INGENIERIA

60,00%

UTE CGSI ASTURIAS LOTE 4 60,00%

UTE INDRA - ALBATROS 60,00%

UTE INDRA-UNISYS 60,00%


UTE INDRA-TELVENT 60,00%

UTE INDRA-PWC (ADIF) 60,00%

UTE PROINTEC-PYG MARJAL SUR 60,00%

UTE PROINTEC-E3 SOLINTEG (UTE COMITÉ D’OBRES)

60,00%

PROINTEC-UG 21 (TOCON-ILLORA) 60,00%

UTE PROINTEC-UG 21 (ALJARAFE II) 60,00%

UTE PROINTEC-EUSKONTROL II (UTE MANUALES)

60,00%

UTE ERNST & YOUNG 60,00%

UTE APIA 21 60,00%

UTE PROINTEC-UG 21 (COIN-ALHAURIN)

60,00%

UTE INDRA - AGFA 61,00%

UTE INDRA SISTEMAS, S.A. - EUROCOPTER ESPAÑA, SA

62,50%

UTE INDRA - IECISA 63,48%

UTE LINEA 9 TRAMO I Y II 64,00%

UTE INDRA - SAINCO 64,00%

UTE LINEA 9 MANTENIMIENTO TRAMO IV

64,00%

UTE INDRA - HP 65,00%

UTE DGT NOROESTE 2014 65,00%

UTE INDRA - LKS 65,00%

UTE OVYCYL INDRA GRUPO NORTE II

66,00%

UTE IECISA - INDRA (SEFCAN) 66,82%

UTE INDRA BMB - T.SOLUCIONES 69,42%

UTE IMD INDRA.TELEF 69,76%

UTE TELECO 70,00%


UTE CGSI ASTURIAS LOTE 3 70,00%

UTE ALG - M & A 70,00%

UTE INDRA - ALFATEC 70,00%

UTE INDRA SISTEMAS, S.A. - UNISYS, S.L.U.

70,00%

UTE PWC - INDRA (EOI) 70,00%

UTE COMUNICACIONES EIBAR - AZITAIN

70,00%

PROINTEC-ALAUDA 70,00%


70,00%


70,00%

MECSA-ESTUDIO TORRE ELORDUY 70,00%

PROINTEC-CONURMA INGENIEROS CONSULTORES, S.L. II

70,00%

PROINTEC - INGENIA SERVICIOS GLOBALES DE INGENIERIA, S.L. (UTE TRAMO 7 PLAYA DEL INGLES)

70,00%

PROINTEC-AQUATICA INGENIERIA CIVIL, SL

70,00%

PROINTEC-INGEPLAN (LINEA 3) 72,50%

PROINTEC-INGEPLAN (BERGARA) 72,50%

UTE MECSA-ACORDE (UTE PLAN FORMACION)

75,00%

UTE INDRA -TELEFÓNICA HDA 78,38%

UTE ITGIPUZKOA 80,00%

UTE INDRA SISTEMAS DE SEGURIDAD-MONTAJES ELECTRICOS ELECTRISUR

80,00%

UTE INDRA - IBM @ DFA 80,00%

UTE INDRA - CESSER 80,00%



6



UTE INDRA - ARTE 80,00%

UTE INDRA - FONTANERIA RAMOS 80,00%

UTE INDRA-SADIEL 043/2012 80,00%

UTE INDRA-PUENTES Y CALZADAS INFRAESTRUCTURAS

80,00%

UTE CC MOVIMA 80,00%

PROINTEC-CIVILPORT-ENRIQUE AMIGO (UTE TRAMO 2 TREN DEL SUR)

80,00%

PROINTEC - AIRTHINK, S.L. - UTE PLANES DIRECTORES

80,00%

UTE INDRA - SADIEL 81,00%

UTE INDRA - SADIEL 81,00%





UTE 3 INDRA - UNITRONICS -”DEIF 2”

85,00%

UTE INDRA SISTEMAS, S.A. - SADIEL, S.A. “PROYECTO SADESI”

85,00%

UTE INDRA - AMBAR 85,00%

UTE INDRA-KONECTA 87,00%

UTE INDRA-OESIA 87,00%

UTE INDRA SISTEMAS, SA-AVANTIC ESTUDIO DE INGENIEROS, SL, UTE

89,50%

UTE INDRA - IRON 92,80%

UTE INDRA - SALLEN 70,00%

PROINTEC-PROINTEC EXTREMADURA II

100,00%



Group’s exposure to currency risk (Appendix III)

62015 US Dollar Pound

SterlingMexican

PesoArgentine

PesoChilean

PesoBrazilian

RealPeruvian

SolSwiss Franc

Canadian Dollar

Norwegian Crone

Colombian Peso

Moroccan Dirham

Polish Zloty

Australian Dollar

Other currencies TOTAL

Other fi nancial assets 20 - - - - - - - 35 - - 10 - - 105 170

Total non-current assets 20 - - - - - - - 35 - - 10 - - 105 170

Trade and other receivables, NON GROUP

153.472 7.242 10.469 9.936 4.054 6.480 1.173 - 270 11 38.292 12.112 178 2.136 63.069 308.894

Other fi nancial assets, NON-GROUP

4 403 27 - - - 38 - - - - - - 65 537

Debt securities, NON-GROUP

579 - - - - - - - - - - - - - - 579

Total current assets 154.055 7.242 10.872 9.963 4.054 6.480 1.173 38 270 11 38.292 12.112 178 2.136 63.134 310.010

Total assets 154.075 7.242 10.872 9.963 4.054 6.480 1.173 38 305 11 38.292 12.122 178 2.136 63.239 310.180

Loans and borrowings 21 - - - - - - - - - - - - - - 21

Finance lease payables 1.538 - - - - - - 1.086 - - - - - - - 2.624

Other fi nancial liabilities 2.175 - - - - - - - - - - - - - 2.175

Trade and other payables

9 - - - - - - - - - - - - - 9

Total current liabilities 3.743 - - - - - - 1.086 - - - - - - - 4.829

Total liabilities 3.743 - - - - - - 1.086 - - - - - - - 4.829

Gross balance sheet exposure 150.332 7.242 10.872 9.963 4.054 6.480 1.173 (1.048) 305 11 38.292 12.122 178 2.136 63.239 305.351

Hedges of sales 265.972 21.973 18.654 - 5.125 1.375 2.139 71 1 - 4.706 1.193 181 4.322 163.904 -

Hedges of purchases 30.253 8.156 - - 57 445 173 206 139 23 369 - 53 369 - -

Derivative fi nancial instruments - net hedges

235.719 13.817 18.654 - 5.068 930 1.966 (135) (138) (23) 4.337 1.193 128 3.953 163.904 -

Rate 0,75209 1,17639 0,05896 0,13690 0,00152 0,34876 0,27830 0,12793 0,00040 0,72500

Sales 7.713 324.649 41.560 6.883.518 41.409 14.305 0 32.714.899 17.662

Purchases 5.909 1.177 0 14.435 0 973 0 4.763.539 43

Forecast sales in foreign currency

0

Forecast purchases in foreign currency

0

This appendix forms an integral part of note 37 a) (I) to the consolidated annual accounts, in conjunction with which it should be read.



62014 US Dollar Pound

SterlingMexican

PesoArgentine

Peso Chilean Peso Brazilian Real

Peruvian Sol

Swiss Franc Canadian Dollar Norwegian

CroneColombian

PesoMoroccan

DirhamPolish Zloty

Australian Dollar

Turkish Lira

Tunisian Dinar

Other currencies TOTAL

Other fi nancial assets 5.724 - - - - - - - - - - - - - 38 - 73 5.835

Total non-current assets

5.724 - - - - - - - - - - - - - 38 - 73 5.835

Trade and Other Receivables,NON-GROUP

154.530 10.002 222 2.274 6 177 88 36 4.579 9.348 3.435 158 7.312 8.133 15.286 215.586

Other fi nancial assets, NON-GROUP

33 42 - - - - - - - - 445 - - - - 19 189 728

Debt securities, NON-GROUP

1.852 - - - - - - - - - - - - - - - - 1.852

Total current assets 156.415 10.044 222 - - 2.274 6 177 88 36 5.024 9.348 3.435 158 7.312 8.152 15.475 218.166

Total assets 162.139 10.044 222 - - 2.274 6 177 88 36 5.024 9.348 3.435 158 7.350 8.152 15.548 224.001

Other fi nancial liabilities 19 - - - - - - - - - - - - - - - - 19

Total non-current fi nancial liabilities

19 - - - - - - - - - - - - - - - - 19

Loans and borrowings 2.581 - - - - - - - - - - - - - - - - 2.581

Trade and other payables

79.772 6.999 - 26 - 68 - 463 107 - 6.943 1.572 218 160 160 373 8.755 105.616

Total current liabilities 82.353 6.999 - 26 - 68 - 463 107 - 6.943 1.572 218 160 160 373 8.755 108.197

Total liabilities 82.372 6.999 - 26 - 68 - 463 107 - 6.943 1.572 218 160 160 373 8.755 108.216

Gross balance sheet exposure 79.767 3.045 222 (26) - 2.206 6 (286) (19) 36 (1.919) 7.776 3.217 158 7.350 8.152 6.793 115.785

Hedges of sales 290.950 14.241 21.764 - 9.579 50.557 762 805 440 42 3.317 1.430 3.341 1.816 - - 32.388 -

Hedges of purchases 41.432 5.057 7 - 370 428 106 335 785 1.846 605 108 55 368 - - - -

Derivative fi nancial instruments - net hedges

249.518 9.184 21.757 - 9.209 50.129 656 470 (345) (1.804) 2.712 1.322 3.286 1.448 - - 32.388 -

Rate 0,75209 1,17639 0,05896 0,13690 0,00152 0,34876 0,27830 0,12793 0,00040 0,72500 0,81185 0,72967

Sales7.713

324.649 41.560 6.883.518 41.409 14.305 0 32.714.899 17.662 0 3.299

Purchases 5.909 1.177 0 14.435 0 973 0 4.763.539 43 334 862

Forecast sales in foreign currency

26.565 192.494 42.731 48.131 306.357 58.622 7.224 32.450 66.125 39.762 32.481 19.794 37.135 116.155 1.098.345

Forecast purchases in foreign currency

12.051 88.675 9.301 16.736 30.576 10.710 20 11.753 33.553 10.006 20.024 6.478 25.313 31.891 344.918

This appendix forms an integral part of note 37 a) (I) to the consolidated annual accounts, in conjunction with which it should be read.



Information on signifi cant non-controlling interests at 31 December 2015 and 2014.(Anexo IV)

6

2015

Thousands of Euros Indra Philippines

Inmize Sistemas

Electrica Soluziona

Other companies of little signifi cance Total

Percentage of non-controlling interest

50% 50% 49%

Information on statement of fi nancial position

Non-current assets 2.283 - 57 - 2.340

Non-current liabilities (1.369) - (42) - (1.411)

Total non-current net assets 914 - 15 - 929

Current assets 25.281 8.014 3.174 - 36.469

Current liabilities (9.618) (275) (1.289) - (11.182)

Total non-current net assets 15.663 7.739 1.885 - 25.287

Net assets 16.577 7.739 1.900 - 26.216

Carrying amount of non-controlling interests (*) 8.289 3.870 937 (952) 12.143

Income statement information

Total comprehensive income 2.923 4 326 - 3.253

Consolidated profi t/(loss) attributable to non-controlling interests

1.462 2 161 (2.287) (663)

2014

Thousands of Euros Indra Philippines

Inmize Sistemas

Electrica Soluziona

Other companies of little signifi cance Total

Percentage of non-controlling interest 50% 50% 49%

Information on statement of fi nancial position

Non-current assets 2.722 1 91 - 2.814

Non-current liabilities (2.172) - (51) - (2.223)

Total non-current net assets 550 1 40 - 591

Current assets 23.598 7.997 2.925 - 34.520

Current liabilities (11.467) (262) (823) - (12.552)

Total non-current net assets 12.131 7.735 2.102 - 21.968

Net assets 12.681 7.736 2.142 - 22.559

Carrying amount of non-controlling interests (*) 6.341 3.868 1.056 1.877 13.142

Income statement information

Total comprehensive income 2.274 64 544 - 2.882

Consolidated profi t attributable to non-controlling interests 1.137 32 268 71 1.508

(*) Excluding translation differences (*) Excluding translation differences

This appendix forms an integral part of note 18 to the consolidated annual accounts, in conjunction with which it should be read.



Information on signifi cant interests in associates at 31 December 2015 and 2014.(Anexo V)

6

2015 A4 Essor Saes Capital I-3 Televisión IRB Riesgo Operacional

Eurofi gter Simulation

Systems

Iniciativas Bioenergéticas

Societat Catalana per la Mobilitat

Other companies of little

signifi canceTotal

Thousands of Euros


21% 49% 50% 20% 26% 20% 25%

Non-current assets - 1.970 35 419 294 10.654 5.329 503 19.204

Current assets 1.133 13 880 167 39.177 1.635 873 21.106 64.984

Non-current liabilities (26) (1.985) (228) (692) (31.176) (8.868) (5.928) (4.024) (52.927)

Current liabilities (1.103) (1) (770) (15) (8.232) (3.331) (272) (17.614) (31.338)

Revenues (1.733) - (3.180) (102) (2.727) (12.062) (2.892) (2.243) (24.939)

Subcontracting and other expenses 1.729 3 3.263 223 2.664 11.972 2.890 2.272 25.016

Total - - - - - - - - -

2014 A4 Essor Saes Capital Indra Sistemas de Tesorería

I-3 Televisión IESSA IRB Riesgo

Operacional

Eurofi gter Simulation

Systems

Other companies of little

signifi canceTotal

Thousands of Euros


21% 49% 49% 50% 50% 20% 26%

Non-current assets - 4.020 68 26 620 1.365 294 55.468 61.861

Current assets 1.820 870 912 2.313 3.032 715 39.177 26.911 75.750

Non-current liabilities (127) (4.051) (22) (418) (2.066) (1.294) (29.888) (53.310) (91.176)

Current liabilities (717) (254) (784) (2.685) (9.073) (489) (8.232) (27.854) (50.088)

Revenues (2.922) (835) (2.459) (6.426) (4.864) (1.068) (16.240) (65.040) (99.854)

Subcontracting and other expenses 1.946 250 2.285 7.190 12.352 771 14.889 63.825 103.508

Total - - - - - - - - -

This appendix forms an integral part of note 11 to the consolidated annual accounts, in conjunction with which it should be read.

Documents

CONSOLIDATED ANNUAL ACCOUNTS 2015 - Indra · Indra Consolidated Annual Accounts and Management Report 4 2 Consolidated Annual Accounts Consolidated Income Statements for the years